Critical Review: Nexa Resources (NYSE:NEXA) & Osisko Development (NYSE:OGG)

Osisko Development (NYSE:OGG) and Nexa Resources (NYSE:NEXA) are both small-cap materials companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, analyst recommendations, risk, profitability and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Osisko Development	148.74%	11.53%	6.55%
Nexa Resources	4.00%	27.88%	7.40%

Analyst Ratings

This is a breakdown of current ratings and price targets for Osisko Development and Nexa Resources, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Osisko Development	0	2	1	1	2.75
Nexa Resources	1	4	1	1	2.29

Nexa Resources has a consensus target price of $14.94, indicating a potential upside of 30.58%. Given Nexa Resources’ higher possible upside, analysts plainly believe Nexa Resources is more favorable than Osisko Development.

Valuation & Earnings

This table compares Osisko Development and Nexa Resources”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Osisko Development	$25.39 million	26.62	-$120.96 million	($0.12)	-18.42
Nexa Resources	$3.00 billion	0.50	$132.63 million	$1.10	10.40

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

Insider & Institutional Ownership

15.2% of Osisko Development shares are owned by institutional investors. 0.9% of Osisko Development shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Nexa Resources beats Osisko Development on 7 of the 12 factors compared between the two stocks.

About Osisko Development

Osisko Development Corp. acquires, explores, and develops mineral properties in Canada, Mexico, and the United States. It explores for gold; and precious and base metals. The company's flagship asset is the Cariboo Gold Project covering an area of approximately 155,000 hectares consisting of 415 mineral titles located in British Columbia, Canada. It also holds a portfolio of marketable securities. Osisko Development Corp. is based in Montréal, Canada.

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.