Teck Resources (NYSE: TECK) and MAG Silver Corp (NYSE:MAG) are both basic materials companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Profitability

This table compares Teck Resources and MAG Silver Corp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Teck Resources 17.93% 13.01% 6.62%
MAG Silver Corp N/A -3.01% -3.00%

Analyst Ratings

This is a breakdown of recent recommendations for Teck Resources and MAG Silver Corp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Teck Resources 1 0 22 0 2.91
MAG Silver Corp 0 0 5 2 3.29

Teck Resources currently has a consensus price target of $29.81, suggesting a potential upside of 36.73%. MAG Silver Corp has a consensus price target of $17.33, suggesting a potential upside of 45.90%. Given MAG Silver Corp’s stronger consensus rating and higher possible upside, analysts plainly believe MAG Silver Corp is more favorable than Teck Resources.

Dividends

Teck Resources pays an annual dividend of $0.08 per share and has a dividend yield of 0.4%. MAG Silver Corp does not pay a dividend. Teck Resources pays out 3.0% of its earnings in the form of a dividend.

Insider and Institutional Ownership

46.7% of Teck Resources shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Teck Resources and MAG Silver Corp’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Teck Resources $9.25 billion 1.36 $3.83 billion $2.66 8.20
MAG Silver Corp N/A N/A -$6.98 million N/A N/A

Teck Resources has higher revenue and earnings than MAG Silver Corp.

Summary

Teck Resources beats MAG Silver Corp on 8 of the 12 factors compared between the two stocks.

Teck Resources Company Profile

Teck Resources Ltd is engaged in the business of exploring for, acquiring, developing and producing natural resources. The Company’s activities are organized into business units that are focused on steelmaking coal, copper, zinc and energy. It operates in five segments: steelmaking coal, copper, zinc, energy and corporate. The corporate segment includes all of its activities in commodities other than copper, coal, zinc and energy. Through its interests in mining and processing operations in Canada, the United States, Chile and Peru, the Company is a seaborne exporter of steelmaking coal, and producer of copper and mined zinc. It also produces lead, molybdenum, silver, and various specialty and other metals, chemicals and fertilizers. In addition, the Company owns interest in the Fort Hills oil sands project and interests in other assets in the Athabasca region of Alberta. It is engaged in advancing porphyry copper projects in Canada, Chile, Peru, the United States and Turkey.

MAG Silver Corp Company Profile

MAG Silver Corp. is a mineral exploration and development company. The Company is focused on the acquisition, exploration and development of projects located within the Mexican silver belt. The Company operates through the exploration of mineral properties in Mexico segment. The Company’s projects include Juanicipio Property, Cinco De Mayo Property and Guigui Property. Juanicipio Property is located in the Fresnillo District, Zacatecas State, Mexico. The Juanicipio Property includes silver-gold-lead-zinc epithermal vein deposit. The Company owns the mineral concessions comprising the Cinco de Mayo Property. The Cinco de Mayo Property is located approximately 190 kilometers northwest of the city of Chihuahua, in northern Chihuahua State, Mexico, and covers approximately 25,110 hectares. The Company owns the Guigui project located in the Santa Eulalia Mining District of Chihuahua, Mexico. Guigui project consists of approximately 8,300 hectares.

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