Endeavour Silver (NYSE:EXK – Get Free Report) and Nucor (NYSE:NUE – Get Free Report) are both materials companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, dividends, risk, analyst recommendations, valuation and institutional ownership.
Institutional & Insider Ownership
20.1% of Endeavour Silver shares are held by institutional investors. Comparatively, 76.5% of Nucor shares are held by institutional investors. 0.8% of Endeavour Silver shares are held by company insiders. Comparatively, 0.6% of Nucor shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Volatility and Risk
Endeavour Silver has a beta of 1.43, indicating that its share price is 43% more volatile than the S&P 500. Comparatively, Nucor has a beta of 1.87, indicating that its share price is 87% more volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Endeavour Silver | 0 | 3 | 5 | 1 | 2.78 |
| Nucor | 0 | 4 | 13 | 0 | 2.76 |
Endeavour Silver currently has a consensus price target of $14.50, suggesting a potential upside of 54.34%. Nucor has a consensus price target of $276.07, suggesting a potential upside of 11.60%. Given Endeavour Silver’s stronger consensus rating and higher probable upside, equities analysts plainly believe Endeavour Silver is more favorable than Nucor.
Earnings and Valuation
This table compares Endeavour Silver and Nucor”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Endeavour Silver | $432.80 million | 6.43 | -$119.10 million | $0.21 | 44.74 |
| Nucor | $32.49 billion | 1.73 | $1.74 billion | $12.54 | 19.73 |
Nucor has higher revenue and earnings than Endeavour Silver. Nucor is trading at a lower price-to-earnings ratio than Endeavour Silver, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Endeavour Silver and Nucor’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Endeavour Silver | 9.30% | 17.46% | 8.93% |
| Nucor | 7.99% | 12.73% | 8.03% |
Summary
Endeavour Silver beats Nucor on 9 of the 15 factors compared between the two stocks.
About Endeavour Silver
Endeavour Silver Corp., a silver mining company, engages in the acquisition, exploration, development, extraction, processing, refining, and reclamation of mineral properties in Chile and the United States. It explores for gold and silver deposits, and precious metals. The company was formerly known as Endeavour Gold Corp. and changed its name to Endeavour Silver Corp. in September 2004. Endeavour Silver Corp. was incorporated in 1981 and is headquartered in Vancouver, Canada.
About Nucor
Nucor Corporation engages in manufacture and sale of steel and steel products. It operates in three segments: steel mills, steel products, and raw materials. The Steel Mills segment produces hot-rolled, cold-rolled, and galvanized sheet steel products; plate steel products; wide-flange beams, beam blanks, and H-piling and sheet piling structural steel products; bar steel products, such as blooms, billets, concrete reinforcing and merchant bars, and engineered special bar quality products; and engages in the steel trading and rebar distribution businesses. This segment sells its products to steel service centers, fabricators, and manufacturers in the United States, Canada, and Mexico. The Steel Products segment offers steel joists and joist girders, steel decks, and galvanized torque tubes for used in solar arrays, hollow structural section steel tubing, electrical conduit, fabricated concrete reinforcing steel, cold finished steel, steel fasteners, steel grating and expanded metal, wire and wire mesh, metal building systems, insulated metal panels, steel racking, overhead doors, and utility towers and structures for communications and energy transmission. This segment is also involved in the piling distribution business. The Raw Materials segment produces direct reduced iron (DRI); brokers ferrous and nonferrous metals, pig iron, hot briquetted iron, and DRI; supplies ferro-alloys; processes ferrous and nonferrous scrap metal; and engages in the natural gas production and industrial gas business. This segment sells its ferrous scrap to electric arc furnace steel mills and foundries for manufacturing process; and nonferrous scrap metal to aluminum can producers, secondary aluminum smelters, steel mills and other processors, and consumers of various nonferrous metals. It markets its products through in-house sales force; and internal distribution and trading companies. Nucor Corporation was founded in 1905 and is headquartered in Charlotte, North Carolina.
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