FCX vs. SCCO, VALE, RIO, BHP, ECL, APD, DOW, NUE, NEM, and PPG
Should you be buying Freeport-McMoRan stock or one of its competitors? The main competitors of Freeport-McMoRan include Southern Copper (SCCO), Vale (VALE), Rio Tinto Group (RIO), BHP Group (BHP), Ecolab (ECL), Air Products and Chemicals (APD), DOW (DOW), Nucor (NUE), Newmont (NEM), and PPG Industries (PPG). These companies are all part of the "basic materials" sector.
Freeport-McMoRan vs.
Southern Copper (NYSE:SCCO) and Freeport-McMoRan (NYSE:FCX) are both large-cap basic materials companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, dividends, institutional ownership, risk, media sentiment, community ranking, earnings, profitability and analyst recommendations.
Freeport-McMoRan has higher revenue and earnings than Southern Copper. Freeport-McMoRan is trading at a lower price-to-earnings ratio than Southern Copper, indicating that it is currently the more affordable of the two stocks.
Freeport-McMoRan received 706 more outperform votes than Southern Copper when rated by MarketBeat users. Likewise, 67.04% of users gave Freeport-McMoRan an outperform vote while only 56.89% of users gave Southern Copper an outperform vote.
Southern Copper presently has a consensus target price of $62.29, suggesting a potential downside of 7.40%. Freeport-McMoRan has a consensus target price of $38.42, suggesting a potential upside of 10.49%. Given Freeport-McMoRan's stronger consensus rating and higher probable upside, analysts plainly believe Freeport-McMoRan is more favorable than Southern Copper.
In the previous week, Southern Copper had 4 more articles in the media than Freeport-McMoRan. MarketBeat recorded 9 mentions for Southern Copper and 5 mentions for Freeport-McMoRan. Southern Copper's average media sentiment score of 0.33 beat Freeport-McMoRan's score of -0.03 indicating that Southern Copper is being referred to more favorably in the media.
Southern Copper has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500. Comparatively, Freeport-McMoRan has a beta of 2, indicating that its share price is 100% more volatile than the S&P 500.
Southern Copper has a net margin of 26.46% compared to Freeport-McMoRan's net margin of 12.07%. Southern Copper's return on equity of 33.71% beat Freeport-McMoRan's return on equity.
Southern Copper pays an annual dividend of $4.00 per share and has a dividend yield of 5.9%. Freeport-McMoRan pays an annual dividend of $0.30 per share and has a dividend yield of 0.9%. Southern Copper pays out 115.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Freeport-McMoRan pays out 16.8% of its earnings in the form of a dividend. Southern Copper has raised its dividend for 1 consecutive years. Southern Copper is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
7.0% of Southern Copper shares are held by institutional investors. Comparatively, 77.1% 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 hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Summary
Freeport-McMoRan beats Southern Copper on 11 of the 21 factors compared between the two stocks.
New MarketBeat Followers Over Time
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.
Skip ChartMedia Sentiment Over Time
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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