Loncor Resources (LONCF) and McEwen Mining (MUX) Financial Survey

Loncor Resources (OTCMKTS:LONCF) and McEwen Mining (NYSE:MUX) are both small-cap basic materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, institutional ownership and risk.

Volatility and Risk

Loncor Resources has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500. Comparatively, McEwen Mining has a beta of -0.99, suggesting that its share price is 199% less volatile than the S&P 500.

Valuation & Earnings

This table compares Loncor Resources and McEwen Mining’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Loncor Resources N/A N/A -$60,000.00 N/A N/A
McEwen Mining $67.72 million 9.26 -$10.63 million ($0.03) -62.00

Loncor Resources has higher earnings, but lower revenue than McEwen Mining.

Dividends

McEwen Mining pays an annual dividend of $0.01 per share and has a dividend yield of 0.5%. Loncor Resources does not pay a dividend. McEwen Mining pays out -33.3% of its earnings in the form of a dividend.

Institutional & Insider Ownership

29.7% of McEwen Mining shares are held by institutional investors. 26.1% of McEwen Mining shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Loncor Resources and McEwen Mining’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Loncor Resources N/A 0.08% 0.08%
McEwen Mining -17.63% -3.84% -3.29%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Loncor Resources and McEwen Mining, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Loncor Resources 0 0 0 0 N/A
McEwen Mining 0 0 2 0 3.00

McEwen Mining has a consensus price target of $4.00, indicating a potential upside of 115.05%. Given McEwen Mining’s higher probable upside, analysts plainly believe McEwen Mining is more favorable than Loncor Resources.

Summary

McEwen Mining beats Loncor Resources on 7 of the 12 factors compared between the two stocks.

Loncor Resources Company Profile

Loncor Resources Inc., a gold exploration company, engages in the acquisition, exploration, and development of precious metal projects in the Democratic Republic of the Congo and Canada. The company also explores for platinum deposits. It holds interests in the Ngayu project comprising 12 exploration permits covering an area of approximately 960 square kilometers in the Tshopo Province in the northeast of the Democratic Republic of the Congo; and the North Kivu project, which consists of 47 exploration permits that cover an area of approximately 13,000 square kilometers located in the North Kivu Province in eastern Democratic Republic of the Congo. The company was formerly known as Nevada Bob's International Inc. and changed its name to Loncor Resources Inc. in November 2008. Loncor Resources Inc. is headquartered in Toronto, Canada.

McEwen Mining Company Profile

McEwen Mining Inc. engages in the exploration, development, production, and sale of gold and silver. The company owns 100% interests in the El Gallo 1 mine and El Gallo 2 project in the state of Sinaloa, Mexico; and the Black Fox Complex, Buffalo Ankerite, Fuller, Davidson Tisdale, and Black Fox North properties in Canada. It also owns a 61.01% interest in the Paymaster property in Canada; and a 49% interest in the San José mine in the province of Santa Cruz, Argentina. In addition, the company owns 100% interests in the Gold Bar and Tonkin properties in Nevada, the United States; and the Los Azules copper project in San Juan, Argentina. Further, it owns interests in other exploration properties located in the United States; and in the province of San Juan, Argentina, as well as in Mexico. The company was formerly known as US Gold Corporation and changed its name to McEwen Mining Inc. in January 2012. McEwen Mining Inc. was founded in 1979 and is based in Toronto, Canada.

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