Critical Contrast: Pure Energy Minerals (OTCMKTS:PEMIF) and Lundin Mining (OTC:LUNMF)

Pure Energy Minerals (OTCMKTS:PEMIF) and Lundin Mining (OTC:LUNMF) are both basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, valuation, earnings, profitability, analyst recommendations, dividends and institutional ownership.

Valuation and Earnings

This table compares Pure Energy Minerals and Lundin Mining”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pure Energy Minerals	$400,000.00	13.43	-$620,000.00	($0.02)	-7.91
Lundin Mining	$3.42 billion	2.24	$241.56 million	($0.26)	-33.92

Lundin Mining has higher revenue and earnings than Pure Energy Minerals. Lundin Mining is trading at a lower price-to-earnings ratio than Pure Energy Minerals, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Pure Energy Minerals has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500. Comparatively, Lundin Mining has a beta of 1.52, indicating that its share price is 52% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Pure Energy Minerals and Lundin Mining, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pure Energy Minerals	0	0	0	0	0.00
Lundin Mining	0	1	0	0	2.00

Insider and Institutional Ownership

0.1% of Lundin Mining shares are held by institutional investors. 0.4% of Lundin Mining shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Pure Energy Minerals and Lundin Mining’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pure Energy Minerals	-172.39%	-2.63%	-2.61%
Lundin Mining	-5.15%	5.27%	3.05%

Summary

Lundin Mining beats Pure Energy Minerals on 9 of the 12 factors compared between the two stocks.

About Pure Energy Minerals

Pure Energy Minerals Limited acquires, explores, and develops mineral properties. Its primary project is the Clayton Valley lithium brine project located in Clayton Valley, Esmeralda County, Nevada. The company was formerly known as Harmony Gold Corp. and changed its name to Pure Energy Minerals Limited in October 2012. Pure Energy Minerals Limited is headquartered in Vancouver, Canada.

About Lundin Mining

LUNDIN MINING CORPORATION is a rapidly growing, diversified base metals mining company with operations in Portugal, Spain, Sweden and Ireland. The Company currently has six mines in operation producing copper, nickel, lead and zinc. In addition, Lundin Mining holds a development project pipeline which includes the world class Tenke Fungurume copper cobalt project in the Democratic Republic of Congo and the Ozernoe zinc project in Russia. The Company holds an extensive exploration portfolio and interests in international mining and exploration ventures.