Pan African Resources (PAF) Competitors

Pan African Resources (LON:PAF) and Hochschild Mining (LON:HOC) are both small-cap basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their media sentiment, valuation, dividends, institutional ownership, analyst recommendations, risk, profitability and earnings.

Is PAF or HOC a better dividend stock?

Pan African Resources pays an annual dividend of GBX 1 per share and has a dividend yield of 1.9%. Hochschild Mining pays an annual dividend of GBX 4 per share and has a dividend yield of 1.5%. Pan African Resources pays out 47.2% of its earnings in the form of a dividend. Hochschild Mining pays out 85.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Pan African Resources is clearly the better dividend stock, given its higher yield and lower payout ratio.

Which has higher valuation and earnings, PAF or HOC?

Pan African Resources has higher earnings, but lower revenue than Hochschild Mining. Pan African Resources is trading at a lower price-to-earnings ratio than Hochschild Mining, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pan African Resources	£266.93M	4.24	£58.60M	£2.12	24.49
Hochschild Mining	£1.01B	1.72	£38.41M	£4.69	57.38

Does the media prefer PAF or HOC?

In the previous week, Hochschild Mining had 3 more articles in the media than Pan African Resources. MarketBeat recorded 4 mentions for Hochschild Mining and 1 mentions for Pan African Resources. Hochschild Mining's average media sentiment score of 0.14 beat Pan African Resources' score of 0.10 indicating that Hochschild Mining is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Pan African Resources	0 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Neutral
Hochschild Mining	1 Very Positive mention(s)	1 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Neutral

Is PAF or HOC more profitable?

Pan African Resources has a net margin of 21.95% compared to Hochschild Mining's net margin of 3.79%. Pan African Resources' return on equity of 16.03% beat Hochschild Mining's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Pan African Resources	21.95%	16.03%	12.99%
Hochschild Mining	3.79%	4.90%	7.11%

Which has more volatility & risk, PAF or HOC?

Pan African Resources has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500. Comparatively, Hochschild Mining has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500.

Do analysts rate PAF or HOC?

Pan African Resources presently has a consensus price target of GBX 53, indicating a potential upside of 2.22%. Hochschild Mining has a consensus price target of GBX 324, indicating a potential upside of 20.45%. Given Hochschild Mining's higher probable upside, analysts clearly believe Hochschild Mining is more favorable than Pan African Resources.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pan African Resources	0 Sell rating(s)	0 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	3.00
Hochschild Mining	0 Sell rating(s)	1 Hold rating(s)	4 Buy rating(s)	0 Strong Buy rating(s)	2.80

Do institutionals & insiders believe in PAF or HOC?

71.5% of Pan African Resources shares are owned by institutional investors. Comparatively, 48.0% of Hochschild Mining shares are owned by institutional investors. 17.7% of Pan African Resources shares are owned by insiders. Comparatively, 38.7% of Hochschild Mining shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Pan African Resources and Hochschild Mining tied by winning 9 of the 18 factors compared between the two stocks.