Quaterra Resources (OTCMKTS:QTRRF) and Freeport-McMoRan (NYSE:FCX) are both basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, analyst recommendations, earnings and profitability.

Analyst Ratings

This is a summary of recent ratings for Quaterra Resources and Freeport-McMoRan, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Quaterra Resources 0 0 0 0 N/A
Freeport-McMoRan 3 10 6 0 2.16

Freeport-McMoRan has a consensus target price of $16.71, suggesting a potential upside of 45.27%. Given Freeport-McMoRan’s higher possible upside, analysts plainly believe Freeport-McMoRan is more favorable than Quaterra Resources.

Earnings and Valuation

This table compares Quaterra Resources and Freeport-McMoRan’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Quaterra Resources N/A N/A -$1.24 million N/A N/A
Freeport-McMoRan $16.40 billion 1.02 $1.82 billion $1.17 9.83

Freeport-McMoRan has higher revenue and earnings than Quaterra Resources.

Institutional and Insider Ownership

0.3% of Quaterra Resources shares are owned by institutional investors. Comparatively, 70.4% of Freeport-McMoRan shares are owned by institutional investors. 1.1% of Freeport-McMoRan shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Quaterra Resources and Freeport-McMoRan’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Quaterra Resources N/A -3.48% -3.33%
Freeport-McMoRan 15.80% 22.63% 7.53%

Risk and Volatility

Quaterra Resources has a beta of 2.68, suggesting that its stock price is 168% more volatile than the S&P 500. Comparatively, Freeport-McMoRan has a beta of 2.45, suggesting that its stock price is 145% more volatile than the S&P 500.

Dividends

Freeport-McMoRan pays an annual dividend of $0.20 per share and has a dividend yield of 1.7%. Quaterra Resources does not pay a dividend. Freeport-McMoRan pays out 17.1% of its earnings in the form of a dividend.

Summary

Freeport-McMoRan beats Quaterra Resources on 10 of the 12 factors compared between the two stocks.

About Quaterra Resources

Quaterra Resources Inc. operates as a copper exploration and development company primarily in North America. It holds 100% interests in the MacArthur, Yerington, Bear, and Wassuk copper properties located in the Yerington District, Nevada, as well as an option to acquire a 90% interest in the Groundhog copper prospect covering 40,000 acres located to the southwest of Anchorage, Alaska. The company was formerly known as Aquaterre Mineral Development Ltd. and changed its name to Quaterra Resources Inc. in October 1997. Quaterra Resources Inc. was incorporated in 1993 and is headquartered in Vancouver, Canada.

About Freeport-McMoRan

Freeport-McMoRan Inc. engages in the mining of mineral properties in the United States, Indonesia, Peru, and Chile. The company primarily explores for copper, gold, molybdenum, silver, and other metals, as well as oil and gas. Its assets include the Grasberg minerals district in Indonesia; Morenci, Bagdad, Safford, Sierrita, and Miami in Arizona; Tyrone and Chino in New Mexico; and Henderson and Climax in Colorado, North America, as well as Cerro Verde and El Abra mines in South America. It also operates a portfolio of oil and gas assets comprising oil and natural gas production onshore in South Louisiana; and on the Gulf of Mexico shelf and oil production offshore California. As of December 31, 2017, the company's estimated consolidated recoverable proven and probable mineral reserves totaled 86.7 billion pounds of copper, 23.5 million ounces of gold, and 2.84 billion pounds of molybdenum, as well as estimated proved developed oil and natural gas reserves totaled 10.1 million barrels of oil equivalents. The company was formerly known as Freeport-McMoRan Copper & Gold Inc. and changed its name to Freeport-McMoRan Inc. in July 2014. Freeport-McMoRan Inc. was founded in 1987 and is headquartered in Phoenix, Arizona.

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