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

Valuation & Earnings

This table compares Nexa Resources and Teck Resources’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nexa Resources $1.91 billion 1.05 $93.16 million $0.58 30.78
Teck Resources $6.97 billion 2.02 $785.40 million $3.29 7.52

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

Profitability

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

Net Margins Return on Equity Return on Assets
Nexa Resources 2.88% 2.16% 1.09%
Teck Resources 19.72% 15.16% 7.92%

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nexa Resources 0 0 5 0 3.00
Teck Resources 1 1 15 0 2.82

Nexa Resources currently has a consensus price target of $21.52, indicating a potential upside of 20.56%. Teck Resources has a consensus price target of $29.64, indicating a potential upside of 19.87%. Given Nexa Resources’ stronger consensus rating and higher probable upside, equities analysts clearly believe Nexa Resources is more favorable than Teck Resources.

Dividends

Teck Resources pays an annual dividend of $0.16 per share and has a dividend yield of 0.6%. Nexa Resources does not pay a dividend. Teck Resources pays out 4.9% of its earnings in the form of a dividend.

Institutional and Insider Ownership

54.3% of Teck Resources shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Teck Resources beats Nexa Resources on 10 of the 14 factors compared between the two stocks.

Nexa Resources Company Profile

Nexa Resources SA, formerly VM Holding SA, is a Luxembourg-based company engaged in the mineral resources industry. The Company is a metals and mining entity mainly engaged in zinc content production, and whose product portfolio also includes copper, lead, silver and gold. Its mining and smelting presence is located in Brazil, conducted by Votorantim Metais Zinco SA, and in Peru, conducted by Compania Minera Milpo SAA, and Votorantim Metais-Cajamarquilla SA. Its controlling shareholder is Votorantim SA, a Brazilian privately owned industrial conglomerate that holds ownership interests in metal, steel, cement, energy and pulp companies, among others.

Teck Resources Company Profile

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.

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