Turquoise Hill Resources (NYSE: TRQ) and Nexa Resources (NYSE:NEXA) are both basic materials companies, but which is the better stock? We will compare the two companies based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.
Institutional & Insider Ownership
33.9% of Turquoise Hill Resources shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This is a breakdown of recent ratings for Turquoise Hill Resources and Nexa Resources, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Turquoise Hill Resources||0||2||2||0||2.50|
Turquoise Hill Resources presently has a consensus target price of $4.75, suggesting a potential upside of 55.23%. Nexa Resources has a consensus target price of $21.52, suggesting a potential upside of 28.10%. Given Turquoise Hill Resources’ higher possible upside, research analysts plainly believe Turquoise Hill Resources is more favorable than Nexa Resources.
This table compares Turquoise Hill Resources and Nexa Resources’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Turquoise Hill Resources||24.48%||2.81%||1.77%|
Valuation & Earnings
This table compares Turquoise Hill Resources and Nexa Resources’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Turquoise Hill Resources||$1.20 billion||5.12||$210.60 million||$0.11||27.82|
|Nexa Resources||$1.91 billion||N/A||$93.16 million||$0.58||28.97|
Turquoise Hill Resources has higher earnings, but lower revenue than Nexa Resources. Turquoise Hill Resources is trading at a lower price-to-earnings ratio than Nexa Resources, indicating that it is currently the more affordable of the two stocks.
Turquoise Hill Resources beats Nexa Resources on 6 of the 11 factors compared between the two stocks.
Turquoise Hill Resources Company Profile
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).
Nexa Resources Company Profile
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.
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