Critical Review: NexGen Energy (NYSE:NXE) & Teck Resources (NYSE:TECK)

NexGen Energy (NYSE:NXEGet Free Report) and Teck Resources (NYSE:TECKGet Free Report) are both basic materials companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, profitability, dividends, earnings and analyst recommendations.

Earnings and Valuation

This table compares NexGen Energy and Teck Resources”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NexGen Energy N/A N/A -$56.60 million ($0.41) -30.23
Teck Resources $7.70 billion 3.72 $1.00 billion $2.02 29.43

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

Insider and Institutional Ownership

42.4% of NexGen Energy shares are owned by institutional investors. Comparatively, 78.1% of Teck Resources shares are owned by institutional investors. 5.6% of NexGen Energy shares are owned by insiders. Comparatively, 0.1% of Teck Resources shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

NexGen Energy has a beta of 1.44, meaning that its share price is 44% more volatile than the S&P 500. Comparatively, Teck Resources has a beta of 0.79, meaning that its share price is 21% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for NexGen Energy and Teck Resources, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NexGen Energy 1 1 4 1 2.71
Teck Resources 0 12 7 1 2.45

Teck Resources has a consensus price target of $53.33, suggesting a potential downside of 10.29%. Given Teck Resources’ higher possible upside, analysts plainly believe Teck Resources is more favorable than NexGen Energy.

Profitability

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

Net Margins Return on Equity Return on Assets
NexGen Energy N/A -21.35% -14.24%
Teck Resources 12.98% 5.90% 3.43%

Summary

Teck Resources beats NexGen Energy on 10 of the 13 factors compared between the two stocks.

About NexGen Energy

(Get Free Report)

NexGen Energy Ltd., an exploration and development stage company, engages in the acquisition, exploration, and evaluation and development of uranium properties in Canada. It holds a 100% interest in the Rook I project that consists of 32 contiguous mineral claims totaling an area of 35,065 hectares located in the southwestern Athabasca Basin of Saskatchewan. The company is headquartered in Vancouver, Canada.

About Teck Resources

(Get Free Report)

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.

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