Alcoa (AA) vs HudBay Minerals Inc (HBM)

Alcoa and HudBay Minerals Inc are both in the Basic Materials sector (Aluminum and Copper). Alcoa is the larger, with a market value of $10.1B against $9.1B — 1.1× the size. Alcoa trades at the lower P/E: 6.6× against 12.2×. HudBay Minerals Inc grew revenue faster over the last twelve months: 12.1% against 11.2%. HudBay Minerals Inc has the higher net margin (27.5% vs 10.7%) and the lower return on invested capital (13.3% vs 13.8%). Both pay a dividend; Alcoa yields more (1.04% vs 0.11%). Across the 22 metrics below, Alcoa leads on 13 and HudBay Minerals Inc on 9.

Valuation

Metric AA HBM
P/E 6.61 12.21
P/S 0.71 3.37
P/B 1.24 1.58
Price to free cash flow 11.32 29.38
EV/EBITDA 3.89 5.87
EV/Sales 0.74 3.53
Earnings yield 15.13% 8.19%
Free cash flow yield 8.83% 3.40%

Profitability

Metric AA HBM
Gross margin 21.93% 39.40%
Operating margin 13.33% 44.67%
Net margin 10.68% 27.48%
Free cash flow margin 6.29% 11.46%
Return on equity 20.82% 16.70%
Return on assets 8.41% 9.91%
Return on invested capital 13.77% 13.25%

Growth

Metric AA HBM
Revenue growth (TTM) 11.22% 12.09%
EPS growth (last fiscal year) 1,600.00% 620.00%
Revenue growth, 5-year CAGR 6.68% 15.14%
Net income growth, 5-year CAGR 0.00% 0.00%

Health

Metric AA HBM
Debt to equity 0.58 0.17
Current ratio 2.31 2.24
Net debt to EBITDA 0.90 0.36

Dividend

Metric AA HBM
Dividend yield 1.04% 0.11%
Payout ratio 0.07 0.01

Size

Metric AA HBM
Market cap 10.14b 9.14b

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