Teck Resources (NYSE:TECK) vs. South32 (OTCMKTS:SOUHY) Head to Head Survey

Teck Resources (NYSE:TECK) and South32 (OTCMKTS:SOUHY) are both large-cap basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.

Dividends

Teck Resources pays an annual dividend of $0.36 per share and has a dividend yield of 0.6%. South32 pays an annual dividend of $0.24 per share and has a dividend yield of 1.5%. Teck Resources pays out 20.2% of its earnings in the form of a dividend.

Risk and Volatility

Teck Resources has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500. Comparatively, South32 has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Teck Resources and South32, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Teck Resources	0	12	7	2	2.52
South32	0	6	0	1	2.29

Teck Resources presently has a consensus target price of $53.33, suggesting a potential downside of 9.56%. Given Teck Resources’ stronger consensus rating and higher probable upside, research analysts plainly believe Teck Resources is more favorable than South32.

Profitability

This table compares Teck Resources and South32’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Teck Resources	11.93%	4.14%	2.41%
South32	N/A	N/A	N/A

Insider & Institutional Ownership

78.1% of Teck Resources shares are held by institutional investors. Comparatively, 0.1% of South32 shares are held by institutional investors. 0.1% of Teck Resources shares are held by insiders. Comparatively, 0.2% of South32 shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Teck Resources and South32″s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Teck Resources	$6.48 billion	4.38	$296.30 million	$1.78	33.13
South32	$5.78 billion	2.42	$213.00 million	N/A	N/A

Teck Resources has higher revenue and earnings than South32.

Summary

Teck Resources beats South32 on 12 of the 15 factors compared between the two stocks.

About Teck Resources

Teck Resources Limited engages in exploring for, acquiring, developing, and producing natural resources in Asia, Europe, and North America. The company operates through Steelmaking Coal, Copper, Zinc, and Energy segments. Its principal products include copper, zinc, steelmaking coal, and blended bitumen. The company also produces lead, silver, and molybdenum; and various specialty and other metals, chemicals, and fertilizers. In addition, it explores for gold. The company was formerly known as Teck Cominco Limited and changed its name to Teck Resources Limited in April 2009. The company was founded in 1913 and is headquartered in Vancouver, Canada.

About South32

South32 Limited operates as a diversified metals and mining company in Australia, India, China, Japan, the Middle East, Mozambique, the Netherlands, Brazil, Russia, South Africa, South Korea, the United States, and internationally. The company operates through Worsley Alumina, Brazil Alumina, Brazil Aluminium, Hillside Aluminium, Mozal Aluminium, Sierra Gorda, Cannington, Hermosa, Cerro Matoso, Illawarra Metallurgical Coal, Australia Manganese, and South Africa Manganese segments. It has a portfolio of assets producing bauxite, alumina, aluminum, copper, silver, lead, zinc, nickel, metallurgical coal, manganese, ferronickel, and other base metals. The company also exports its products. South32 Limited was incorporated in 2000 and is headquartered in Perth, Australia.