Comparing Freeport-McMoRan (NYSE:FCX) and Jaguar Mining (NYSE:JAGGF)

Freeport-McMoRan (NYSE:FCX) and Jaguar Mining (OTCMKTS:JAGGF) are both basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.

Profitability

This table compares Freeport-McMoRan and Jaguar Mining’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Freeport-McMoRan -5.05% -1.55% -0.66%
Jaguar Mining 13.10% 12.35% 7.37%

Institutional and Insider Ownership

72.6% of Freeport-McMoRan shares are held by institutional investors. Comparatively, 19.3% of Jaguar Mining shares are held by institutional investors. 1.0% of Freeport-McMoRan shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Freeport-McMoRan has a beta of 2.26, indicating that its stock price is 126% more volatile than the S&P 500. Comparatively, Jaguar Mining has a beta of 2.38, indicating that its stock price is 138% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Freeport-McMoRan and Jaguar Mining, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Freeport-McMoRan 0 5 13 0 2.72
Jaguar Mining 0 0 0 0 N/A

Freeport-McMoRan currently has a consensus target price of $12.58, suggesting a potential upside of 43.92%. Given Freeport-McMoRan’s higher probable upside, analysts clearly believe Freeport-McMoRan is more favorable than Jaguar Mining.

Valuation and Earnings

This table compares Freeport-McMoRan and Jaguar Mining’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Freeport-McMoRan $14.40 billion 0.88 -$239.00 million $0.02 437.00
Jaguar Mining $97.23 million 2.14 -$150,000.00 N/A N/A

Jaguar Mining has lower revenue, but higher earnings than Freeport-McMoRan.

Summary

Jaguar Mining beats Freeport-McMoRan on 7 of the 12 factors compared between the two stocks.

Freeport-McMoRan Company Profile

Freeport-McMoRan, Inc. engages in the mining of copper, gold, and molybdenum. It operates through the following segments: North America Copper Mines; South America Mining; Indonesia Mining; Molybdenum Mines; Rod and Refining; Atlantic Copper Smelting and Refining; and Corporate, Other, and Eliminations. The North America Copper Mines segment operates open-pit copper mines in Morenci, Bagdad, Safford, Sierrita and Miami in Arizona; and Chino and Tyrone in New Mexico. The South America Mining segment includes Cerro Verde in Peru and El Abra in Chile. The Indonesia Mining segment handles the operations of Grasberg minerals district that produces copper concentrate that contains significant quantities of gold and silver. The Molybdenum Mines segment includes the Henderson underground mine and Climax open-pit mine, both in Colorado. The Rod and Refining segment consists of copper conversion facilities located in North America, and includes a refinery, rod mills, and a specialty copper products facility. The Atlantic Copper Smelting and Refining segment smelts and refines copper concentrate and markets refined copper and precious metals in slimes. The Corporate, Other, and Eliminations segment consists of other mining and eliminations, oil and gas operations, and other corporate and elimination items. The company was founded by James R. Moffett on November 10, 1987 and is headquartered in Phoenix, AZ.

Jaguar Mining Company Profile

Jaguar Mining Inc., a junior gold mining company, engages in the acquisition, exploration, development, and operation of gold producing properties in Brazil. Its principal assets include the Turmalina Gold Mine Complex and Caeté Gold Mine Complex located in the Iron Quadrangle in the state of Minas Gerais. Its mineral claims cover an area of approximately 64,000 hectares. The company was founded in 2002 and is headquartered in Toronto, Canada.

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