Analyzing Teck Resources (TECK) and Rio Tinto (RIO)
Teck Resources (NYSE: TECK) and Rio Tinto (NYSE:RIO) are both large-cap basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.
Earnings and Valuation
This table compares Teck Resources and Rio Tinto’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Teck Resources||$6.97 billion||2.41||$785.40 million||$3.16||9.31|
|Rio Tinto||$33.78 billion||2.24||$4.62 billion||N/A||N/A|
This is a breakdown of recent ratings and price targets for Teck Resources and Rio Tinto, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Teck Resources currently has a consensus price target of $29.64, suggesting a potential upside of 0.72%. Rio Tinto has a consensus price target of $54.79, suggesting a potential downside of 2.25%. Given Teck Resources’ stronger consensus rating and higher possible upside, analysts plainly believe Teck Resources is more favorable than Rio Tinto.
Risk & Volatility
Teck Resources has a beta of 1.31, indicating that its share price is 31% more volatile than the S&P 500. Comparatively, Rio Tinto has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500.
This table compares Teck Resources and Rio Tinto’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
54.3% of Teck Resources shares are owned by institutional investors. Comparatively, 7.2% of Rio Tinto shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Teck Resources pays an annual dividend of $0.16 per share and has a dividend yield of 0.5%. Rio Tinto pays an annual dividend of $2.37 per share and has a dividend yield of 4.2%. Teck Resources pays out 5.1% of its earnings in the form of a dividend.
Teck Resources beats Rio Tinto on 10 of the 14 factors compared between the two stocks.
About Teck Resources
Teck Resources Ltd is engaged in the business of exploring for, acquiring, developing and producing natural resources. The Company’s activities are organized into business units that are focused on steelmaking coal, copper, zinc and energy. It operates in five segments: steelmaking coal, copper, zinc, energy and corporate. The corporate segment includes all of its activities in commodities other than copper, coal, zinc and energy. Through its interests in mining and processing operations in Canada, the United States, Chile and Peru, the Company is a seaborne exporter of steelmaking coal, and producer of copper and mined zinc. It also produces lead, molybdenum, silver, and various specialty and other metals, chemicals and fertilizers. In addition, the Company owns interest in the Fort Hills oil sands project and interests in other assets in the Athabasca region of Alberta. It is engaged in advancing porphyry copper projects in Canada, Chile, Peru, the United States and Turkey.
About Rio Tinto
Rio Tinto plc is a mining and metals company. The Company’s business is finding, mining and processing mineral resources. The Company’s segments include Iron Ore, Aluminium, Copper & Diamonds, Energy & Minerals and Other Operations. The Company operates an iron ore business, supplying the global seaborne iron ore trade. Its Iron Ore product operations are located in the Pilbara region of Western Australia. The Aluminium business includes bauxite mines, alumina refineries and aluminum smelters. Its bauxite mines are located in Australia, Brazil and Guinea. The Copper & Diamonds segment has managed operations in Australia, Canada, Mongolia and the United States, and non-managed operations in Chile and Indonesia. The Energy & Minerals segment consists of mining, refining and marketing operations in over 10 countries, across six sectors: borates, coal, iron ore concentrate and pellets, salt, titanium dioxide and uranium.
Receive News & Ratings for Teck Resources Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Teck Resources and related companies with MarketBeat.com's FREE daily email newsletter.