VALE vs. FCX, RIO, BHP, APD, NEM, ECL, VNTRQ, VNTR, NUE, and DOW
Should you be buying Vale stock or one of its competitors? The main competitors of Vale include Freeport-McMoRan (FCX), Rio Tinto Group (RIO), BHP Group (BHP), Air Products and Chemicals (APD), Newmont (NEM), Ecolab (ECL), Venator Materials (VNTRQ), Venator Materials (VNTR), Nucor (NUE), and DOW (DOW). These companies are all part of the "basic materials" sector.
Freeport-McMoRan (NYSE:FCX) and Vale (NYSE:VALE) are both large-cap basic materials companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, earnings, institutional ownership, dividends, community ranking, valuation, media sentiment, analyst recommendations and risk.
Freeport-McMoRan received 323 more outperform votes than Vale when rated by MarketBeat users. Likewise, 66.53% of users gave Freeport-McMoRan an outperform vote while only 61.14% of users gave Vale an outperform vote.
Freeport-McMoRan pays an annual dividend of $0.30 per share and has a dividend yield of 0.6%. Vale pays an annual dividend of $1.18 per share and has a dividend yield of 9.4%. Freeport-McMoRan pays out 26.5% of its earnings in the form of a dividend. Vale pays out 65.2% 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. Vale has increased its dividend for 1 consecutive years. Vale is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Freeport-McMoRan currently has a consensus target price of $50.07, suggesting a potential downside of 0.77%. Vale has a consensus target price of $16.67, suggesting a potential upside of 32.19%. Given Freeport-McMoRan's higher probable upside, analysts clearly believe Vale is more favorable than Freeport-McMoRan.
Vale has a net margin of 18.72% compared to Vale's net margin of 6.97%. Freeport-McMoRan's return on equity of 19.59% beat Vale's return on equity.
In the previous week, Freeport-McMoRan had 18 more articles in the media than Vale. MarketBeat recorded 27 mentions for Freeport-McMoRan and 9 mentions for Vale. Vale's average media sentiment score of 0.69 beat Freeport-McMoRan's score of 0.44 indicating that Freeport-McMoRan is being referred to more favorably in the media.
Freeport-McMoRan has a beta of 2.02, suggesting that its stock price is 102% more volatile than the S&P 500. Comparatively, Vale has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500.
Vale has higher revenue and earnings than Freeport-McMoRan. Vale is trading at a lower price-to-earnings ratio than Freeport-McMoRan, indicating that it is currently the more affordable of the two stocks.
80.8% of Freeport-McMoRan shares are owned by institutional investors. Comparatively, 21.9% of Vale shares are owned by institutional investors. 0.8% of Freeport-McMoRan shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Summary
Freeport-McMoRan beats Vale on 12 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding VALE 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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