Freeport-McMoran (NYSE: FCX) and Pretium Resources (NYSE:PVG) are both mid-cap basic materials companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, valuation, profitability, analyst recommendations, risk, dividends and earnings.

Earnings & Valuation

This table compares Freeport-McMoran and Pretium Resources’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Freeport-McMoran $15.31 billion 1.39 $5.20 billion $0.71 20.77
Pretium Resources N/A N/A -$16.23 million ($0.16) -75.06

Freeport-McMoran has higher revenue and earnings than Pretium Resources. Pretium Resources is trading at a lower price-to-earnings ratio than Freeport-McMoran, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Freeport-McMoran and Pretium Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Freeport-McMoran 5.97% 10.45% 2.60%
Pretium Resources N/A -2.05% -1.14%

Analyst Ratings

This is a summary of current ratings for Freeport-McMoran and Pretium Resources, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Freeport-McMoran 2 11 4 0 2.12
Pretium Resources 0 0 7 0 3.00

Freeport-McMoran presently has a consensus price target of $15.21, indicating a potential upside of 3.14%. Pretium Resources has a consensus price target of $15.75, indicating a potential upside of 31.14%. Given Pretium Resources’ stronger consensus rating and higher possible upside, analysts plainly believe Pretium Resources is more favorable than Freeport-McMoran.

Volatility & Risk

Freeport-McMoran has a beta of 2.54, indicating that its stock price is 154% more volatile than the S&P 500. Comparatively, Pretium Resources has a beta of 0.21, indicating that its stock price is 79% less volatile than the S&P 500.

Insider and Institutional Ownership

68.0% of Freeport-McMoran shares are owned by institutional investors. Comparatively, 43.3% of Pretium Resources shares are owned by institutional investors. 1.3% of Freeport-McMoran shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Freeport-McMoran beats Pretium Resources on 9 of the 12 factors compared between the two stocks.

About Freeport-McMoran

Freeport-McMoRan Inc. (FCX) is a mining company. The Company operates through geographical assets with proven and probable reserves of copper, gold and molybdenum, and traded copper producer. The Company’s segments include refined copper products, copper in concentrate, gold, molybdenum, oil and other. The Company’s segments include the Morenci, Cerro Verde, Grasberg copper mines, the Rod & Refining operations and the United States (U.S.) Oil and Gas Operations. The Company has organized its operations into five divisions, which include North America copper mines, South America mining, Indonesia mining and Molybdenum mines. The Company’s portfolio of assets includes the Grasberg minerals district in Indonesia, copper and gold deposits, and mining operations in the Americas, including the large-scale Morenci minerals district in North America and the Cerro Verde operation in South America.

About Pretium Resources

Pretium Resources Inc. is a Canada-based exploration and development company. The Company is engaged in the acquisition, exploration and development of precious metal resource properties in the Americas. The Company’s projects include Brucejack Project and the Snowfield Project, both of which are located in northwestern British Columbia. The Company’s focus is on advancing the Brucejack Project to production as a high-grade gold underground mine. The Brucejack Project is the Company’s material mineral project, which is located approximately 950 kilometers northwest of Vancouver, British Columbia, and over 65 kilometers north-northwest of Stewart, British Columbia. The Brucejack Project consists of approximately four mining leases and over six mineral claims totaling approximately 3,050 hectares in area. The Snowfield Project borders the Brucejack Project to the north and consists of over one mineral claim with an area of approximately 1,267.43 hectares.

Receive News & Ratings for Freeport-McMoran Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Freeport-McMoran Inc. and related companies with MarketBeat.com's FREE daily email newsletter.