Nexa Resources (NYSE: NEXA) and Turquoise Hill Resources (NYSE:TRQ) are both basic materials companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, analyst recommendations, risk, earnings and profitability.

Insider & Institutional Ownership

33.9% of Turquoise Hill Resources shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Nexa Resources and Turquoise Hill Resources’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nexa Resources N/A N/A N/A N/A N/A
Turquoise Hill Resources $1.20 billion 4.93 $210.60 million $0.11 26.82

Turquoise Hill Resources has higher revenue and earnings than Nexa Resources.

Analyst Recommendations

This is a summary of recent ratings and price targets for Nexa Resources and Turquoise Hill Resources, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nexa Resources 0 0 5 0 3.00
Turquoise Hill Resources 0 2 2 0 2.50

Nexa Resources presently has a consensus price target of $21.52, indicating a potential upside of 26.59%. Turquoise Hill Resources has a consensus price target of $4.75, indicating a potential upside of 61.02%. Given Turquoise Hill Resources’ higher probable upside, analysts plainly believe Turquoise Hill Resources is more favorable than Nexa Resources.

Profitability

This table compares Nexa Resources and Turquoise Hill Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nexa Resources N/A N/A N/A
Turquoise Hill Resources 24.48% 2.81% 1.77%

Summary

Turquoise Hill Resources beats Nexa Resources on 6 of the 8 factors compared between the two stocks.

About Nexa Resources

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 Turquoise Hill Resources

Turquoise Hill Resources Ltd. is an international mining company. The Company focuses on the operation and further development of the Oyu Tolgoi copper-gold mine in Southern Mongolia, which is the Company’s principal material mineral resource property. The Company’s Oyu Tolgoi mine is held through approximately 65% interest in Oyu Tolgoi LLC (Oyu Tolgoi) and the remaining approximately 35% interest is held by Erdenes Oyu Tolgoi LLC (Erdenes). The Company’s Oyu Tolgoi mine is located approximately 550 kilometers south of Ulaanbaatar, Mongolia’s capital city, and 80 kilometers north of the Mongolia-China border. The Company’s Mineralization on the property consists of porphyry-style copper, gold, silver and molybdenum contained in a linear structural trend (the Oyu Tolgoi Trend) of deposits throughout this trend. They include, from south to north, the Heruga Deposit, the Oyut deposit and the Hugo Dummett deposits (Hugo South, Hugo North and Hugo North Extension).

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