Southern Copper (NYSE:SCCO – Get Free Report) and Teck Resources (NYSE:TECK – Get Free Report) are both large-cap materials companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, earnings, profitability, dividends, analyst recommendations and institutional ownership.
Earnings & Valuation
This table compares Southern Copper and Teck Resources”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Southern Copper | $13.42 billion | 12.34 | $4.33 billion | $6.84 | 29.03 |
| Teck Resources | $7.70 billion | 4.07 | $1.00 billion | $3.69 | 17.56 |
Analyst Recommendations
This is a summary of current recommendations and price targets for Southern Copper and Teck Resources, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Southern Copper | 7 | 5 | 2 | 0 | 1.64 |
| Teck Resources | 0 | 6 | 6 | 0 | 2.50 |
Southern Copper currently has a consensus price target of $156.02, indicating a potential downside of 21.42%. Teck Resources has a consensus price target of $62.25, indicating a potential downside of 3.94%. Given Teck Resources’ stronger consensus rating and higher possible upside, analysts plainly believe Teck Resources is more favorable than Southern Copper.
Profitability
This table compares Southern Copper and Teck Resources’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Southern Copper | 35.87% | 49.04% | 25.81% |
| Teck Resources | 17.85% | 10.42% | 6.07% |
Risk and Volatility
Southern Copper has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500. Comparatively, Teck Resources has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500.
Insider and Institutional Ownership
7.9% of Southern Copper shares are held by institutional investors. Comparatively, 78.1% of Teck Resources shares are held by institutional investors. 0.1% of Southern Copper shares are held by company insiders. Comparatively, 0.1% of Teck Resources shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Dividends
Southern Copper pays an annual dividend of $4.40 per share and has a dividend yield of 2.2%. Teck Resources pays an annual dividend of $0.36 per share and has a dividend yield of 0.6%. Southern Copper pays out 64.3% of its earnings in the form of a dividend. Teck Resources pays out 9.8% 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
Southern Copper beats Teck Resources on 10 of the 16 factors compared between the two stocks.
About Southern Copper
Southern Copper Corporation engages in mining, exploring, smelting, and refining copper and other minerals in Peru, Mexico, Argentina, Ecuador, and Chile. The company is involved in the mining, milling, and flotation of copper ore to produce copper and molybdenum concentrates; smelting of copper concentrates to produce blister and anode copper; refining of anode copper to produce copper cathodes; production of molybdenum concentrate and sulfuric acid; production of refined silver, gold, and other materials; and mining and processing of zinc, copper, molybdenum, silver, gold, and lead. It operates the Toquepala and Cuajone open-pit mines, and a smelter and refinery in Peru; and La Caridad, an open-pit copper mine, as well as a copper ore concentrator, a SX-EW plant, a smelter, refinery, and a rod plant in Mexico. The company also operates Buenavista, an open-pit copper mine, as well as two copper concentrators and two operating SX-EW plants in Mexico. In addition, it operates underground mines that produce zinc, lead, copper, silver, and gold; a coal mine; and a zinc refinery. The company has interests in 156,818 hectares and 502,688 hectares of concessions in Peru and Mexico; and 168,200 hectares and 28,453 hectares of exploration concessions in Argentina and Chile. Southern Copper Corporation was incorporated in 1952 and is based in Phoenix, Arizona. Southern Copper Corporation is a subsidiary of Americas Mining Corporation.
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.
Receive News & Ratings for Southern Copper Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Southern Copper and related companies with MarketBeat.com's FREE daily email newsletter.
