Head-To-Head Contrast: Teck Resources (TECK) and Fortuna Silver Mines (FSM)
Teck Resources (NYSE: TECK) and Fortuna Silver Mines (NYSE:FSM) are both basic materials companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.
This is a summary of current ratings and price targets for Teck Resources and Fortuna Silver Mines, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Fortuna Silver Mines||0||1||3||1||3.00|
Teck Resources presently has a consensus price target of $29.81, indicating a potential upside of 36.67%. Fortuna Silver Mines has a consensus price target of $9.00, indicating a potential upside of 94.81%. Given Fortuna Silver Mines’ stronger consensus rating and higher possible upside, analysts clearly believe Fortuna Silver Mines is more favorable than Teck Resources.
Institutional & Insider Ownership
46.7% of Teck Resources shares are held by institutional investors. Comparatively, 41.6% of Fortuna Silver Mines shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Volatility and Risk
Teck Resources has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500. Comparatively, Fortuna Silver Mines has a beta of 0.22, meaning that its stock price is 78% less volatile than the S&P 500.
Valuation & Earnings
This table compares Teck Resources and Fortuna Silver Mines’ 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|
|Fortuna Silver Mines||$251.82 million||2.92||$118.59 million||$0.25||18.48|
Teck Resources has higher revenue and earnings than Fortuna Silver Mines. Teck Resources is trading at a lower price-to-earnings ratio than Fortuna Silver Mines, indicating that it is currently the more affordable of the two stocks.
Teck Resources pays an annual dividend of $0.08 per share and has a dividend yield of 0.4%. Fortuna Silver Mines does not pay a dividend. Teck Resources pays out 3.0% of its earnings in the form of a dividend.
This table compares Teck Resources and Fortuna Silver Mines’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Fortuna Silver Mines||15.97%||9.08%||7.07%|
Teck Resources beats Fortuna Silver Mines on 9 of the 16 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.
Fortuna Silver Mines Company Profile
Fortuna Silver Mines Inc. is a Canada-based mining company engaged in silver mining and related activities in Latin America, including exploration, extraction and processing. The Company operates the Caylloma silver, lead, and zinc mine (Caylloma) in southern Peru and the San Jose silver and gold mine (San Jose) in southern Mexico. The Company’s segments include Corporate, Bateas and Cuzcatlan. The Company owns interest in the Caylloma mine and related mining concessions located in southern Peru. The Caylloma property is located in the Caylloma Mining District, approximately 220 kilometers north-northwest of Arequipa, Peru. The Company produces approximately 1.7 million ounces of silver and over 1,160 ounces of gold at Caylloma. The Company’s San Jose property, which covers a silver gold bearing epithermal vein system is located in the state of Oaxaca in southern Mexico. The Company produces approximately 4.9 million ounces of silver and over 38,530 ounces of gold at San Jose.
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