Financial Comparison: Teck Resources (TECK) vs. Its Peers

Teck Resources (NYSE:TECK) is one of 1,984 publicly-traded companies in the “Metals & Mining” industry, but how does it contrast to its peers? We will compare Teck Resources to related businesses based on the strength of its institutional ownership, analyst recommendations, risk, profitability, dividends, valuation and earnings.

Analyst Ratings

This is a breakdown of current ratings for Teck Resources and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Teck Resources	0	10	6	0	2.38
Teck Resources Competitors	6406	22609	32307	1801	2.47

Teck Resources presently has a consensus price target of $75.25, suggesting a potential upside of 24.45%. As a group, “Metals & Mining” companies have a potential upside of 25.46%. Given Teck Resources’ peers stronger consensus rating and higher possible upside, analysts clearly believe Teck Resources has less favorable growth aspects than its peers.

Earnings and Valuation

This table compares Teck Resources and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Teck Resources	$15.12 billion	$1.00 billion	10.82
Teck Resources Competitors	$5.21 billion	$278.94 million	-26.22

Teck Resources has higher revenue and earnings than its peers. Teck Resources is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Insider and Institutional Ownership

78.1% of Teck Resources shares are owned by institutional investors. Comparatively, 15.9% of shares of all “Metals & Mining” companies are owned by institutional investors. 0.1% of Teck Resources shares are owned by insiders. Comparatively, 17.7% of shares of all “Metals & Mining” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

Teck Resources has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500. Comparatively, Teck Resources’ peers have a beta of 0.96, suggesting that their average stock price is 4% less volatile than the S&P 500.

Dividends

Teck Resources pays an annual dividend of $0.35 per share and has a dividend yield of 0.6%. Teck Resources pays out 6.3% of its earnings in the form of a dividend. As a group, “Metals & Mining” companies pay a dividend yield of 10.1% and pay out 10.8% of their earnings in the form of a dividend.

Profitability

This table compares Teck Resources and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Teck Resources	25.15%	11.93%	7.01%
Teck Resources Competitors	-1,164,884,689,320,590,400.00%	-52.92%	-2.03%

Summary

Teck Resources beats its peers on 9 of the 15 factors compared.

Teck Resources Company Profile

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.