Teck Resources (NYSE:TECK) and NexGen Energy (NYSE:NXE) Head-To-Head Analysis

Teck Resources (NYSE:TECK) and NexGen Energy (NYSE:NXE) are both basic materials companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, profitability, valuation, dividends and risk.

Institutional and Insider Ownership

78.1% of Teck Resources shares are owned by institutional investors. Comparatively, 42.4% of NexGen Energy shares are owned by institutional investors. 0.1% of Teck Resources shares are owned by insiders. Comparatively, 5.6% of NexGen Energy shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and target prices for Teck Resources and NexGen Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Teck Resources	0	12	7	2	2.52
NexGen Energy	1	1	4	1	2.71

Teck Resources presently has a consensus price target of $53.33, suggesting a potential downside of 9.56%. Given Teck Resources’ higher possible upside, analysts plainly believe Teck Resources is more favorable than NexGen Energy.

Risk and Volatility

Teck Resources has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500. Comparatively, NexGen Energy has a beta of 1.44, suggesting that its share price is 44% more volatile than the S&P 500.

Valuation & Earnings

This table compares Teck Resources and NexGen Energy”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Teck Resources	$6.48 billion	4.38	$296.30 million	$1.78	33.13
NexGen Energy	N/A	N/A	-$56.60 million	($0.41)	-28.38

Teck Resources has higher revenue and earnings than NexGen Energy. NexGen Energy is trading at a lower price-to-earnings ratio than Teck Resources, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Teck Resources and NexGen Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Teck Resources	11.93%	4.14%	2.41%
NexGen Energy	N/A	-21.35%	-14.24%

Summary

Teck Resources beats NexGen Energy on 11 of the 14 factors compared between the two stocks.

About Teck Resources

Teck Resources Limited engages in exploring for, acquiring, developing, and producing natural resources in Asia, Europe, and North America. The company operates through Steelmaking Coal, Copper, Zinc, and Energy segments. Its principal products include copper, zinc, steelmaking coal, and blended bitumen. The company also produces lead, silver, and molybdenum; and various specialty and other metals, chemicals, and fertilizers. In addition, it explores for gold. The company was formerly known as Teck Cominco Limited and changed its name to Teck Resources Limited in April 2009. The company was founded in 1913 and is headquartered in Vancouver, Canada.

About NexGen Energy

NexGen Energy Ltd., an exploration and development stage company, engages in the acquisition, exploration, and evaluation and development of uranium properties in Canada. It holds a 100% interest in the Rook I project that consists of 32 contiguous mineral claims totaling an area of 35,065 hectares located in the southwestern Athabasca Basin of Saskatchewan. The company is headquartered in Vancouver, Canada.