Freeport-McMoRan (NYSE:FCX) and IMPALA PLATINUM/S (OTCMKTS:IMPUY) are both basic materials companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, earnings, analyst recommendations, risk, profitability, valuation and institutional ownership.
Risk & Volatility
Freeport-McMoRan has a beta of 2.45, meaning that its share price is 145% more volatile than the S&P 500. Comparatively, IMPALA PLATINUM/S has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500.
Freeport-McMoRan pays an annual dividend of $0.20 per share and has a dividend yield of 1.8%. IMPALA PLATINUM/S does not pay a dividend. Freeport-McMoRan pays out 17.1% of its earnings in the form of a dividend.
Earnings & Valuation
This table compares Freeport-McMoRan and IMPALA PLATINUM/S’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Freeport-McMoRan||$16.40 billion||0.96||$1.82 billion||$1.17||9.33|
|IMPALA PLATINUM/S||$2.80 billion||0.63||-$834.02 million||($0.14)||-17.21|
Freeport-McMoRan has higher revenue and earnings than IMPALA PLATINUM/S. IMPALA PLATINUM/S is trading at a lower price-to-earnings ratio than Freeport-McMoRan, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
70.4% of Freeport-McMoRan shares are held by institutional investors. Comparatively, 0.0% of IMPALA PLATINUM/S shares are held by institutional investors. 1.1% of Freeport-McMoRan shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This table compares Freeport-McMoRan and IMPALA PLATINUM/S’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent recommendations and price targets for Freeport-McMoRan and IMPALA PLATINUM/S, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Freeport-McMoRan presently has a consensus target price of $16.71, suggesting a potential upside of 52.98%. Given Freeport-McMoRan’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Freeport-McMoRan is more favorable than IMPALA PLATINUM/S.
Freeport-McMoRan beats IMPALA PLATINUM/S on 15 of the 16 factors compared between the two stocks.
Freeport-McMoRan Inc. engages in the mining of mineral properties in the United States, Indonesia, Peru, and Chile. The company primarily explores for copper, gold, molybdenum, silver, and other metals, as well as oil and gas. Its assets include the Grasberg minerals district in Indonesia; Morenci, Bagdad, Safford, Sierrita, and Miami in Arizona; Tyrone and Chino in New Mexico; and Henderson and Climax in Colorado, North America, as well as Cerro Verde and El Abra mines in South America. It also operates a portfolio of oil and gas assets comprising oil and natural gas production onshore in South Louisiana; and on the Gulf of Mexico shelf and oil production offshore California. As of December 31, 2017, the company's estimated consolidated recoverable proven and probable mineral reserves totaled 86.7 billion pounds of copper, 23.5 million ounces of gold, and 2.84 billion pounds of molybdenum, as well as estimated proved developed oil and natural gas reserves totaled 10.1 million barrels of oil equivalents. The company was formerly known as Freeport-McMoRan Copper & Gold Inc. and changed its name to Freeport-McMoRan Inc. in July 2014. Freeport-McMoRan Inc. was founded in 1987 and is headquartered in Phoenix, Arizona.
About IMPALA PLATINUM/S
Impala Platinum Holdings Limited engages in mining, processing, refining, and marketing platinum and associated platinum group metals (PGMs) in South Africa and Zimbabwe. It operates through Mining Operations, Refining Services, Chrome Processing, and Other segments. The company produces platinum, palladium, and rhodium, as well as nickel. It has operations on the PGM-bearing ore bodies, including the Bushveld Complex located in South Africa; and the Great Dyke situated in Zimbabwe. The company also provides smelting and refining services. Impala Platinum Holdings Limited is based in Johannesburg, South Africa.
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