VALE vs. FCX, RIO, SCCO, BHP, APD, ECL, NEM, NUE, VNTRQ, and VNTR
Should you be buying Vale stock or one of its competitors? The main competitors of Vale include Freeport-McMoRan (FCX), Rio Tinto Group (RIO), Southern Copper (SCCO), BHP Group (BHP), Air Products and Chemicals (APD), Ecolab (ECL), Newmont (NEM), Nucor (NUE), Venator Materials (VNTRQ), and Venator Materials (VNTR). These companies are all part of the "basic materials" sector.
Vale (NYSE:VALE) and Freeport-McMoRan (NYSE:FCX) are both large-cap basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, institutional ownership, risk, profitability, earnings, media sentiment, community ranking and analyst recommendations.
In the previous week, Freeport-McMoRan had 45 more articles in the media than Vale. MarketBeat recorded 55 mentions for Freeport-McMoRan and 10 mentions for Vale. Freeport-McMoRan's average media sentiment score of 0.61 beat Vale's score of 0.54 indicating that Freeport-McMoRan is being referred to more favorably in the news media.
Vale has a net margin of 19.10% compared to Freeport-McMoRan's net margin of 6.97%. Vale's return on equity of 20.00% beat Freeport-McMoRan's return on equity.
21.9% of Vale shares are owned by institutional investors. Comparatively, 80.8% of Freeport-McMoRan shares are owned by institutional investors. 0.8% of Freeport-McMoRan shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Vale currently has a consensus price target of $16.67, indicating a potential upside of 35.74%. Freeport-McMoRan has a consensus price target of $50.07, indicating a potential downside of 0.81%. Given Vale's higher probable upside, research analysts plainly believe Vale is more favorable than Freeport-McMoRan.
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.
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.
Vale has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500. Comparatively, Freeport-McMoRan has a beta of 2.04, meaning that its stock price is 104% more volatile than the S&P 500.
Vale pays an annual dividend of $1.18 per share and has a dividend yield of 9.6%. Freeport-McMoRan pays an annual dividend of $0.30 per share and has a dividend yield of 0.6%. Vale pays out 64.5% 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.
Summary
Freeport-McMoRan beats Vale on 12 of the 20 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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