Southern Copper (OTCMKTS: FSUGY) and FORTESCUE METAL/S (OTCMKTS:FSUGY) are both basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, analyst recommendations, institutional ownership, earnings, dividends and risk.
Earnings & Valuation
This table compares Southern Copper and FORTESCUE METAL/S’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Southern Copper||$6.65 billion||5.08||$728.50 million||N/A||N/A|
|FORTESCUE METAL/S||$8.45 billion||1.04||$2.09 billion||N/A||N/A|
FORTESCUE METAL/S has higher revenue and earnings than Southern Copper.
This is a breakdown of current recommendations for Southern Copper and FORTESCUE METAL/S, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Southern Copper presently has a consensus price target of $46.36, suggesting a potential upside of 6.06%. Given Southern Copper’s higher probable upside, equities research analysts plainly believe Southern Copper is more favorable than FORTESCUE METAL/S.
Southern Copper pays an annual dividend of $1.60 per share and has a dividend yield of 3.7%. FORTESCUE METAL/S pays an annual dividend of $0.52 per share and has a dividend yield of 9.2%.
Volatility & Risk
Southern Copper has a beta of 0.53, indicating that its stock price is 47% less volatile than the S&P 500. Comparatively, FORTESCUE METAL/S has a beta of 1.88, indicating that its stock price is 88% more volatile than the S&P 500.
Institutional and Insider Ownership
7.5% of Southern Copper shares are owned by institutional investors. Comparatively, 0.1% of FORTESCUE METAL/S shares are owned by institutional investors. 0.5% of Southern Copper shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This table compares Southern Copper and FORTESCUE METAL/S’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Southern Copper beats FORTESCUE METAL/S on 8 of the 12 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 FORTESCUE METAL/S
Fortescue Metals Group Limited engages in the exploration, development, production, processing, and sale of iron ore in Australia, China, and internationally. The company owns and operates the Chichester Hub that includes the Cloudbreak and Christmas Creek mines located in the Chichester ranges; and the Solomon Hub comprising the Firetail and Kings Valley mines located in the Hamersley ranges of Pilbara, Western Australia. It is also developing the Eliwana mine situated in the Pilbara region of Western Australia. The company was founded in 2003 and is headquartered in East Perth, Australia.
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