Nexa Resources (NYSE:NEXA) and Adamant DRI Processing&Minerals Group (OTCMKTS:ADMG) are both small-cap basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, institutional ownership and earnings.

Volatility and Risk

Nexa Resources has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500. Comparatively, Adamant DRI Processing&Minerals Group has a beta of 2.2, suggesting that its share price is 120% more volatile than the S&P 500.

Dividends

Nexa Resources pays an annual dividend of $0.47 per share and has a dividend yield of 3.8%. Adamant DRI Processing&Minerals Group does not pay a dividend. Nexa Resources pays out 33.1% of its earnings in the form of a dividend.

Profitability

This table compares Nexa Resources and Adamant DRI Processing&Minerals Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nexa Resources 1.74% 1.61% 0.79%
Adamant DRI Processing&Minerals Group N/A N/A -16.38%

Valuation & Earnings

This table compares Nexa Resources and Adamant DRI Processing&Minerals Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nexa Resources $2.45 billion 0.67 $126.88 million $1.42 8.63
Adamant DRI Processing&Minerals Group $1.76 million 0.42 -$7.17 million N/A N/A

Nexa Resources has higher revenue and earnings than Adamant DRI Processing&Minerals Group.

Insider & Institutional Ownership

10.9% of Nexa Resources shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations for Nexa Resources and Adamant DRI Processing&Minerals Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nexa Resources 1 0 5 0 2.67
Adamant DRI Processing&Minerals Group 0 0 0 0 N/A

Nexa Resources currently has a consensus price target of $22.88, indicating a potential upside of 86.73%. Given Nexa Resources’ higher probable upside, equities analysts plainly believe Nexa Resources is more favorable than Adamant DRI Processing&Minerals Group.

Summary

Nexa Resources beats Adamant DRI Processing&Minerals Group on 10 of the 12 factors compared between the two stocks.

Nexa Resources Company Profile

Nexa Resources S.A., through its subsidiaries, engages in the zinc mining and smelting business in Latin America. It also produces copper, lead, silver and gold deposits. The company owns and operates five mines, including three located in the Central Andes of Peru; and two located in the state of Minas Gerais in Brazil. In addition, it refines byproducts, such as sulfuric acid, silver concentrate, copper cement, and copper sulfate. Nexa Resources S.A. also exports its products. The company was formerly known as VM Holding S.A. and changed its name to Nexa Resources S.A. in September 2017. The company was founded in 1956 and is based in Luxembourg City, Luxembourg. Nexa Resources S.A. is a subsidiary of Votorantim S.A.

Adamant DRI Processing&Minerals Group Company Profile

Adamant DRI Processing and Minerals Group focuses on mining, processing, producing, and selling direct reduced iron feed stock for the steel industry in the People's Republic of China. The company owns an iron ore concentrate production line on the Zhuolu Mine, which is located in Zhuolu County, Hebei Province. It also intends to produce direct reduced iron using advanced reduction rotary kiln technology with iron sand as the principal raw material. The company is based in Zhangjiakou, the People's Republic of China.

Receive News & Ratings for Nexa Resources Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Nexa Resources and related companies with MarketBeat.com's FREE daily email newsletter.