Southern Copper (NYSE: SCCO) and Pretium Resources (NYSE:PVG) are both basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, risk, institutional ownership, valuation, analyst recommendations and dividends.
Southern Copper pays an annual dividend of $1.60 per share and has a dividend yield of 3.5%. Pretium Resources does not pay a dividend.
Insider & Institutional Ownership
7.8% of Southern Copper shares are owned by institutional investors. Comparatively, 51.0% of Pretium Resources shares are owned by institutional investors. 0.5% of Southern Copper shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This is a breakdown of recent recommendations and price targets for Southern Copper and Pretium Resources, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Southern Copper presently has a consensus target price of $46.36, suggesting a potential upside of 1.46%. Pretium Resources has a consensus target price of $14.00, suggesting a potential upside of 80.41%. Given Pretium Resources’ stronger consensus rating and higher probable upside, analysts plainly believe Pretium Resources is more favorable than Southern Copper.
Earnings and Valuation
This table compares Southern Copper and Pretium Resources’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Southern Copper||$6.65 billion||5.31||$728.50 million||N/A||N/A|
|Pretium Resources||$177.93 million||7.97||-$16.45 million||$0.10||77.60|
Southern Copper has higher revenue and earnings than Pretium Resources.
Volatility and Risk
Southern Copper has a beta of 0.53, indicating that its share price is 47% less volatile than the S&P 500. Comparatively, Pretium Resources has a beta of -0.2, indicating that its share price is 120% less volatile than the S&P 500.
This table compares Southern Copper and Pretium Resources’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Southern Copper beats Pretium Resources on 8 of the 14 factors compared between the two stocks.
About Southern Copper
Southern Copper Corporation engages in mining, exploring, smelting, and refining copper and other minerals in Peru, Mexico, Argentina, Chile, and Ecuador. The company is involved in the mining, milling, and flotation of copper ore to produce copper and molybdenum concentrates; smelting of copper concentrates to produce blister and anode copper; refining of anode copper to produce copper cathodes; production of molybdenum concentrate and sulfuric acid; production of refined silver, gold, and other materials; and mining and processing of zinc and lead. It operates the Toquepala and Cuajone open-pit mines, and a smelter and refinery in Peru; and La Caridad, an open-pit copper mine, as well as a copper ore concentrator, a SX-EW plant, a smelter, refinery, and a rod plant. The company also operates Buenavista, an open-pit copper mine, as well as two copper concentrators and three SX-EW plants in Mexico. In addition, it operates five underground mines that produce zinc, lead, copper, silver, and gold; a coal mine that produces coal and coke; and a zinc refinery. It has interests in 44,182 hectares of exploration concessions in Peru; 148,122 hectares of exploration concessions in Mexico; 64,899 hectares of exploration concessions in Argentina; 36,387 hectares of exploration concessions in Chile; and 7,298 hectares of exploration concessions in Ecuador. The company was founded in 1952 and is based in Phoenix, Arizona. Southern Copper Corporation is a subsidiary of Americas Mining Corporation.
About Pretium Resources
Pretium Resources, Inc. engages in the acquisition, exploration, and development of gold and precious metals resource properties. Its projects include Snowfield and Brucejack which are located in British Columbia. The company was founded by Robert Allan Quartermain on October 22, 2010 and is headquartered in Vancouver, Canada.
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