Contrasting Fortuna Silver Mines (FSM) and Nexa Resources (NEXA)
Fortuna Silver Mines (NYSE: FSM) and Nexa Resources (NYSE:NEXA) are both basic materials companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.
This table compares Fortuna Silver Mines and Nexa Resources’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Fortuna Silver Mines||15.44%||9.15%||7.26%|
Valuation and Earnings
This table compares Fortuna Silver Mines and Nexa Resources’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Fortuna Silver Mines||$210.30 million||3.82||$17.85 million||$0.25||20.12|
|Nexa Resources||$1.91 billion||1.18||$93.16 million||$0.51||39.12|
Nexa Resources has higher revenue and earnings than Fortuna Silver Mines. Fortuna Silver Mines is trading at a lower price-to-earnings ratio than Nexa Resources, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and target prices for Fortuna Silver Mines and Nexa Resources, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Fortuna Silver Mines||0||1||4||0||2.80|
Fortuna Silver Mines presently has a consensus target price of $7.50, indicating a potential upside of 49.11%. Nexa Resources has a consensus target price of $21.52, indicating a potential upside of 7.87%. Given Fortuna Silver Mines’ higher possible upside, equities research analysts plainly believe Fortuna Silver Mines is more favorable than Nexa Resources.
Institutional & Insider Ownership
42.2% of Fortuna Silver Mines shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Fortuna Silver Mines Company Profile
Fortuna Silver Mines Inc. is a Canada-based mining company engaged in silver mining and related activities in Latin America, including exploration, extraction and processing. The Company operates the Caylloma silver, lead, and zinc mine (Caylloma) in southern Peru and the San Jose silver and gold mine (San Jose) in southern Mexico. The Company’s segments include Corporate, Bateas and Cuzcatlan. The Company owns interest in the Caylloma mine and related mining concessions located in southern Peru. The Caylloma property is located in the Caylloma Mining District, approximately 220 kilometers north-northwest of Arequipa, Peru. The Company produces approximately 1.7 million ounces of silver and over 1,160 ounces of gold at Caylloma. The Company’s San Jose property, which covers a silver gold bearing epithermal vein system is located in the state of Oaxaca in southern Mexico. The Company produces approximately 4.9 million ounces of silver and over 38,530 ounces of gold at San Jose.
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.
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