VALE vs. SCCO, RIO, FCX, BHP, APD, ECL, NEM, DOW, NUE, and NTR
Should you be buying Vale stock or one of its competitors? The main competitors of Vale include Southern Copper (SCCO), Rio Tinto Group (RIO), Freeport-McMoRan (FCX), BHP Group (BHP), Air Products and Chemicals (APD), Ecolab (ECL), Newmont (NEM), DOW (DOW), Nucor (NUE), and Nutrien (NTR). These companies are all part of the "basic materials" sector.
Vale vs.
Vale (NYSE:VALE) and Southern Copper (NYSE:SCCO) are both large-cap basic materials companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, community ranking, risk, institutional ownership, valuation, media sentiment, dividends, analyst recommendations and earnings.
Vale pays an annual dividend of $0.69 per share and has a dividend yield of 4.4%. Southern Copper pays an annual dividend of $4.00 per share and has a dividend yield of 5.2%. Vale pays out 17.0% of its earnings in the form of a dividend. Southern Copper pays out 117.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
In the previous week, Southern Copper had 5 more articles in the media than Vale. MarketBeat recorded 7 mentions for Southern Copper and 2 mentions for Vale. Southern Copper's average media sentiment score of 0.37 beat Vale's score of -0.11 indicating that Southern Copper is being referred to more favorably in the news media.
Vale presently has a consensus price target of $17.85, suggesting a potential upside of 13.12%. Southern Copper has a consensus price target of $60.14, suggesting a potential downside of 21.12%. Given Vale's stronger consensus rating and higher probable upside, equities analysts plainly believe Vale is more favorable than Southern Copper.
Vale has higher revenue and earnings than Southern Copper. Vale is trading at a lower price-to-earnings ratio than Southern Copper, indicating that it is currently the more affordable of the two stocks.
20.6% of Vale shares are held by institutional investors. Comparatively, 7.0% of Southern Copper shares are held by institutional investors. 0.1% of Southern Copper shares are held by company insiders. 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.
Vale has a net margin of 42.86% compared to Southern Copper's net margin of 26.26%. Vale's return on equity of 43.41% beat Southern Copper's return on equity.
Vale has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500. Comparatively, Southern Copper has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500.
Vale received 370 more outperform votes than Southern Copper when rated by MarketBeat users. Likewise, 60.96% of users gave Vale an outperform vote while only 56.95% of users gave Southern Copper an outperform vote.
Summary
Vale beats Southern Copper on 13 of the 20 factors compared between the two stocks.
New MarketBeat Followers Over Time
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.
Media 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.
