Teck Resources (NYSE: TECK) and A-Mark Precious Metals (NASDAQ:AMRK) are both basic materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, institutional ownership, earnings, profitability and risk.
Valuation & Earnings
This table compares Teck Resources and A-Mark Precious Metals’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Teck Resources||$6.97 billion||2.39||$785.40 million||$3.41||8.57|
|A-Mark Precious Metals||$6.99 billion||0.01||$7.08 million||$0.93||14.78|
Institutional and Insider Ownership
54.3% of Teck Resources shares are held by institutional investors. Comparatively, 19.7% of A-Mark Precious Metals shares are held by institutional investors. 38.8% of A-Mark Precious Metals shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Risk & Volatility
Teck Resources has a beta of 1.31, indicating that its stock price is 31% more volatile than the S&P 500. Comparatively, A-Mark Precious Metals has a beta of 0.02, indicating that its stock price is 98% less volatile than the S&P 500.
This table compares Teck Resources and A-Mark Precious Metals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|A-Mark Precious Metals||0.08%||7.75%||1.09%|
This is a breakdown of current ratings and price targets for Teck Resources and A-Mark Precious Metals, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|A-Mark Precious Metals||0||1||1||1||3.00|
Teck Resources presently has a consensus price target of $29.64, suggesting a potential downside of 0.16%. A-Mark Precious Metals has a consensus price target of $20.90, suggesting a potential upside of 52.00%. Given A-Mark Precious Metals’ stronger consensus rating and higher possible upside, analysts clearly believe A-Mark Precious Metals is more favorable than Teck Resources.
Teck Resources pays an annual dividend of $0.16 per share and has a dividend yield of 0.5%. A-Mark Precious Metals pays an annual dividend of $0.32 per share and has a dividend yield of 2.3%. Teck Resources pays out 4.7% of its earnings in the form of a dividend. A-Mark Precious Metals pays out 34.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Teck Resources beats A-Mark Precious Metals on 10 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.
A-Mark Precious Metals Company Profile
A-Mark Precious Metals, Inc. is a precious metal trading company. The Company is a wholesaler of gold, silver, platinum and palladium bullion and related products, including bars, wafers, grain and coins. It distributes gold and silver coins and bars from sovereign and private mints; provides financing for the purchase of bullion and numismatics; offers storage for bullion, and offers complementary products, such as consignment, customized finance and liquidity programs, such as repurchase (Repo) accounts, and trade quotes in a variety of foreign currencies. It operates through various business units for accounting purposes, including Industrial, Coin and Bar, Trading, Finance, Collateral Finance Corporation, Transcontinental Depository Services and Logistics. It is an authorized distributor of gold and silver coins for sovereign mints and various private mints. The sovereign mints include the United States Mint, the Australian (Perth) Mint and the Austrian Mint, among others.
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