Financial Analysis: Teck Resources (NYSE:TECK) & Aris Mining (NYSE:ARIS)

Aris Mining (NYSE:ARIS) and Teck Resources (NYSE:TECK) are both materials companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, earnings, profitability, risk and valuation.

Volatility & Risk

Aris Mining has a beta of 0.04, indicating that its stock price is 96% less volatile than the S&P 500. Comparatively, Teck Resources has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500.

Institutional and Insider Ownership

39.7% of Aris Mining shares are owned by institutional investors. Comparatively, 78.1% of Teck Resources shares are owned by institutional investors. 0.1% of Teck Resources shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations for Aris Mining and Teck Resources, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aris Mining	0	1	3	0	2.75
Teck Resources	0	7	6	0	2.46

Teck Resources has a consensus price target of $62.25, indicating a potential downside of 8.28%. Given Teck Resources’ higher possible upside, analysts clearly believe Teck Resources is more favorable than Aris Mining.

Valuation and Earnings

This table compares Aris Mining and Teck Resources”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aris Mining	$927.66 million	3.91	$78.35 million	$1.38	12.74
Teck Resources	$13.99 billion	2.34	$1.00 billion	$3.69	18.39

Teck Resources has higher revenue and earnings than Aris Mining. Aris Mining is trading at a lower price-to-earnings ratio than Teck Resources, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Aris Mining and Teck Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Aris Mining	22.43%	22.82%	13.55%
Teck Resources	17.85%	10.42%	6.07%

Summary

Teck Resources beats Aris Mining on 9 of the 14 factors compared between the two stocks.

About Aris Mining

Aris Mining Corporation, together with its subsidiaries, engages in the acquisition, exploration, development, and operation of gold properties in Canada, Colombia, and Guyana. It also explores for silver and copper deposits. The company was formerly known as GCM Mining Corp. and changed its name to Aris Mining Corporation in September 2022. Aris Mining Corporation is based in Vancouver, Canada.

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.