Warrior Met Coal (NYSE:HCC – Get Free Report) and Nexa Resources (NYSE:NEXA – Get Free Report) are both materials companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.
Analyst Recommendations
This is a summary of current ratings and target prices for Warrior Met Coal and Nexa Resources, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Warrior Met Coal | 0 | 4 | 4 | 0 | 2.50 |
| Nexa Resources | 1 | 5 | 1 | 0 | 2.00 |
Warrior Met Coal presently has a consensus target price of $103.83, suggesting a potential upside of 12.31%. Nexa Resources has a consensus target price of $14.94, suggesting a potential upside of 19.91%. Given Nexa Resources’ higher possible upside, analysts clearly believe Nexa Resources is more favorable than Warrior Met Coal.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Warrior Met Coal | $1.31 billion | 3.73 | $57.00 million | $4.16 | 22.22 |
| Nexa Resources | $3.00 billion | 0.55 | $132.63 million | $2.09 | 5.96 |
Nexa Resources has higher revenue and earnings than Warrior Met Coal. Nexa Resources is trading at a lower price-to-earnings ratio than Warrior Met Coal, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Warrior Met Coal and Nexa Resources’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Warrior Met Coal | 13.05% | 10.02% | 7.84% |
| Nexa Resources | 8.02% | 20.25% | 5.28% |
Risk & Volatility
Warrior Met Coal has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500. Comparatively, Nexa Resources has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500.
Institutional & Insider Ownership
92.3% of Warrior Met Coal shares are held by institutional investors. 2.1% of Warrior Met Coal shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Summary
Warrior Met Coal beats Nexa Resources on 9 of the 14 factors compared between the two stocks.
About Warrior Met Coal
Warrior Met Coal, Inc. produces and exports non-thermal metallurgical coal for the steel industry. It operates two underground mines located in Alabama. The company sells its metallurgical coal to a customer base of blast furnace steel producers located primarily in Europe, South America, and Asia. It also sells natural gas, which is extracted as a byproduct from coal production. Warrior Met Coal, Inc. was incorporated in 2015 and is headquartered in Brookwood, Alabama.
About Nexa Resources
Nexa Resources S.A., together with its subsidiaries, engages in the zinc mining and smelting business worldwide. The company operates in two segments, Mining and Smelting. It produces zinc, zamac, zinc oxide, and zincal, as well as by-products, such as copper, lead, silver, gold, copper sulfate, sulfuric acid, copper cementum, silver concentrate, slag aggregates, and cadmium/sponge deposits. The company owns and operates six polymetallic mines, including three located in the Central Andes of Peru; two located in the State of Minas Gerais in Brazil; and one located in the State of Mato Grosso in Brazil. It also owns and operates three zinc smelters comprising one located in Cajamarquilla in Peru; and two located in the State of Minas Gerais in Brazil, which recovers and produces metallic zinc, zinc oxide, and by-products, such as sulfuric acid. The company also exports its products. Its products are used in civil construction, transportation, energy, agriculture, health, and consumer goods industries. The company was formerly known as VM Holding S.A. and changed its name to Nexa Resources S.A. in September 2017. The company was founded in 1956 and is based in Luxembourg, Luxembourg. Nexa Resources S.A. operates as a subsidiary of Votorantim S.A.
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