Critical Survey: Nexa Resources (NEXA) vs. Teck Resources (TECK)
Nexa Resources (NYSE: NEXA) and Teck Resources (NYSE:TECK) are both mid-cap basic materials companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, valuation, risk and 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|
This is a breakdown of recent ratings and target prices for Nexa Resources and Teck Resources, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Nexa Resources currently has a consensus price target of $21.52, indicating a potential upside of 27.34%. Teck Resources has a consensus price target of $31.39, indicating a potential upside of 31.78%. Given Teck Resources’ higher possible upside, analysts clearly believe Teck Resources is more favorable than Nexa Resources.
Teck Resources pays an annual dividend of $0.08 per share and has a dividend yield of 0.3%. Nexa Resources does not pay a dividend. Teck Resources pays out 2.5% of its earnings in the form of a dividend.
Earnings & Valuation
This table compares Nexa Resources and Teck Resources’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Nexa Resources||$1.91 billion||1.00||$93.16 million||$0.51||33.14|
|Teck Resources||$6.97 billion||1.95||$785.40 million||$3.16||7.54|
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.
Insider and Institutional Ownership
54.3% of Teck Resources shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Teck Resources beats Nexa Resources on 11 of the 14 factors compared between the two stocks.
About Nexa Resources
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.
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.
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