Comparing Acerinox (OTCMKTS:ANIOY) and Nexa Resources (NYSE:NEXA)

Acerinox (OTCMKTS:ANIOY) and Nexa Resources (NYSE:NEXA) are both materials companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, earnings, institutional ownership and dividends.

Earnings & Valuation

This table compares Acerinox and Nexa Resources”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Acerinox	$6.54 billion	0.71	-$45.34 million	$0.13	71.42
Nexa Resources	$3.00 billion	0.57	$132.63 million	$2.09	6.17

Nexa Resources has lower revenue, but higher earnings than Acerinox. Nexa Resources is trading at a lower price-to-earnings ratio than Acerinox, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Acerinox and Nexa Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Acerinox	0.95%	2.59%	0.93%
Nexa Resources	8.02%	20.25%	5.28%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Acerinox and Nexa Resources, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Acerinox	1	1	3	1	2.67
Nexa Resources	1	5	1	0	2.00

Nexa Resources has a consensus price target of $14.94, suggesting a potential upside of 15.81%. Given Nexa Resources’ higher possible upside, analysts clearly believe Nexa Resources is more favorable than Acerinox.

Volatility & Risk

Acerinox has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500. Comparatively, Nexa Resources has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500.

Summary

Acerinox beats Nexa Resources on 7 of the 13 factors compared between the two stocks.

About Acerinox

Acerinox, S.A., together with its subsidiaries, manufactures, process, and markets stainless steel products in Spain, the United States, Africa, Asia, Rest of Europe, and internationally. It operates through Stainless steel, and High-performance Alloys segments. The company offers flat products, including hot and cold rolled coils and sheets, strips, flat bars, and discs, as well as engraved coil and sheet, black coil, slabs, circles, billets, and plates. It provides long products, which include wire and hexagonal wire rods, peeled bars, hot and cold reinforcement bars, black bars, profiles, angles, and steel profiles, as well as stainless steel, color coated, and reinforcement wires. In additions, it offers stainless steel products, such as austenitic, ferritic, duplex, and martensitic. Acerinox, S.A. was incorporated in 1970 and is headquartered in Madrid, Spain.

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.