FCX vs. SCCO, RIO, VALE, BHP, VNTRQ, VNTR, ECL, APD, NEM, and DOW
Should you be buying Freeport-McMoRan stock or one of its competitors? The main competitors of Freeport-McMoRan include Southern Copper (SCCO), Rio Tinto Group (RIO), Vale (VALE), BHP Group (BHP), Venator Materials (VNTRQ), Venator Materials (VNTR), Ecolab (ECL), Air Products and Chemicals (APD), Newmont (NEM), and DOW (DOW). These companies are all part of the "basic materials" sector.
Southern Copper (NYSE:SCCO) and Freeport-McMoRan (NYSE:FCX) are both large-cap basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, community ranking, media sentiment, earnings, dividends and risk.
7.9% of Southern Copper shares are held by institutional investors. Comparatively, 80.8% of Freeport-McMoRan shares are held by institutional investors. 0.1% of Southern Copper shares are held by company insiders. Comparatively, 0.8% of Freeport-McMoRan shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Southern Copper has a beta of 1.27, indicating that its share price is 27% more volatile than the S&P 500. Comparatively, Freeport-McMoRan has a beta of 2.02, indicating that its share price is 102% more volatile than the S&P 500.
Southern Copper has higher earnings, but lower revenue than Freeport-McMoRan. Southern Copper is trading at a lower price-to-earnings ratio than Freeport-McMoRan, indicating that it is currently the more affordable of the two stocks.
Southern Copper pays an annual dividend of $0.04 per share and has a dividend yield of 0.0%. Freeport-McMoRan pays an annual dividend of $0.30 per share and has a dividend yield of 0.5%. Southern Copper pays out 1.3% of its earnings in the form of a dividend. Freeport-McMoRan pays out 26.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Southern Copper has a net margin of 24.20% compared to Southern Copper's net margin of 6.97%. Freeport-McMoRan's return on equity of 30.44% beat Southern Copper's return on equity.
Freeport-McMoRan received 712 more outperform votes than Southern Copper when rated by MarketBeat users. Likewise, 66.49% of users gave Freeport-McMoRan an outperform vote while only 56.38% of users gave Southern Copper an outperform vote.
In the previous week, Freeport-McMoRan had 16 more articles in the media than Southern Copper. MarketBeat recorded 24 mentions for Freeport-McMoRan and 8 mentions for Southern Copper. Southern Copper's average media sentiment score of 0.84 beat Freeport-McMoRan's score of 0.81 indicating that Freeport-McMoRan is being referred to more favorably in the news media.
Southern Copper currently has a consensus price target of $90.50, suggesting a potential downside of 30.03%. Freeport-McMoRan has a consensus price target of $51.00, suggesting a potential downside of 7.00%. Given Southern Copper's stronger consensus rating and higher possible upside, analysts clearly believe Freeport-McMoRan is more favorable than Southern Copper.
Summary
Freeport-McMoRan beats Southern Copper on 13 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding FCX and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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