Teck Resources (NYSE: TECK) and Rio Alto Mining (NYSE:RIOM) are both basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, institutional ownership and valuation.
Valuation and Earnings
This table compares Teck Resources and Rio Alto Mining’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Teck Resources||$6.97 billion||2.26||$785.40 million||$3.41||8.10|
|Rio Alto Mining||N/A||N/A||N/A||N/A||N/A|
Teck Resources has higher revenue and earnings than Rio Alto Mining.
This table compares Teck Resources and Rio Alto Mining’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Rio Alto Mining||N/A||N/A||N/A|
Teck Resources pays an annual dividend of $0.16 per share and has a dividend yield of 0.6%. Rio Alto Mining does not pay a dividend. Teck Resources pays out 4.7% of its earnings in the form of a dividend.
This is a summary of recent ratings and price targets for Teck Resources and Rio Alto Mining, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Rio Alto Mining||0||0||0||0||N/A|
Teck Resources presently has a consensus target price of $29.64, suggesting a potential upside of 7.32%. Given Teck Resources’ higher probable upside, research analysts plainly believe Teck Resources is more favorable than Rio Alto Mining.
Institutional and Insider Ownership
53.0% of Teck Resources shares are held by institutional investors. 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.
Teck Resources beats Rio Alto Mining on 9 of the 10 factors compared between the two stocks.
Teck Resources Company Profile
Teck Resources Ltd is engaged in the business of exploring for, acquiring, developing and producing natural resources. The Company’s activities are organized into business units that are focused on steelmaking coal, copper, zinc and energy. It operates in five segments: steelmaking coal, copper, zinc, energy and corporate. The corporate segment includes all of its activities in commodities other than copper, coal, zinc and energy. Through its interests in mining and processing operations in Canada, the United States, Chile and Peru, the Company is a seaborne exporter of steelmaking coal, and producer of copper and mined zinc. It also produces lead, molybdenum, silver, and various specialty and other metals, chemicals and fertilizers. In addition, the Company owns interest in the Fort Hills oil sands project and interests in other assets in the Athabasca region of Alberta. It is engaged in advancing porphyry copper projects in Canada, Chile, Peru, the United States and Turkey.
Rio Alto Mining Company Profile
Rio Alto Mining Limited is a Canada-based resource exploration company. The Company is engaged in the business of acquiring, exploring, developing and operating mineral resource properties in Peru. The Company is also engaged in the business of acquiring, exploring, and developing gold resources and advanced stage exploration projects in Peru and Latin America. The Company owns and operates the La Arena Mine and the Shahuindo Gold Projects in northern Peru. The Company is focused on the development of the 21,000 hectares La Arena gold / copper project, located in north central Peru. The La Arena Project consists of 20,673 hectares in 44 concessions located 480 kilometers north-northwest of Lima, the capital of Peru, and approximately 18 kilometers from Huamachuco.
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