Nexa Resrcs Sa (NYSE: NEXA) and Freeport-McMoran (NYSE:FCX) are both basic materials companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, profitability, dividends and risk.

Analyst Ratings

This is a breakdown of recent recommendations for Nexa Resrcs Sa and Freeport-McMoran, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nexa Resrcs Sa 0 0 4 0 3.00
Freeport-McMoran 2 11 4 0 2.12

Nexa Resrcs Sa currently has a consensus price target of $21.15, suggesting a potential upside of 32.10%. Freeport-McMoran has a consensus price target of $15.69, suggesting a potential upside of 12.50%. Given Nexa Resrcs Sa’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Nexa Resrcs Sa is more favorable than Freeport-McMoran.

Profitability

This table compares Nexa Resrcs Sa and Freeport-McMoran’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nexa Resrcs Sa N/A N/A N/A
Freeport-McMoran 6.20% 13.35% 3.52%

Earnings & Valuation

This table compares Nexa Resrcs Sa and Freeport-McMoran’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Nexa Resrcs Sa N/A N/A N/A N/A N/A
Freeport-McMoran $14.83 billion 1.36 -$4.32 billion $0.72 19.38

Nexa Resrcs Sa has higher revenue, but lower earnings than Freeport-McMoran.

Institutional and Insider Ownership

69.7% of Freeport-McMoran shares are held by institutional investors. 1.3% of Freeport-McMoran shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Freeport-McMoran beats Nexa Resrcs Sa on 6 of the 8 factors compared between the two stocks.

About Nexa Resrcs Sa

Nexa Resources SA, formerly VM Holding SA, is a Luxembourg-based company engaged in the mineral resources industry. The Company is a metals and mining entity mainly engaged in zinc content production, and whose product portfolio also includes copper, lead, silver and gold. Its mining and smelting presence is located in Brazil, conducted by Votorantim Metais Zinco SA, and in Peru, conducted by Compania Minera Milpo SAA, and Votorantim Metais-Cajamarquilla SA. Its controlling shareholder is Votorantim SA, a Brazilian privately owned industrial conglomerate that holds ownership interests in metal, steel, cement, energy and pulp companies, among others.

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.

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