Comparing Osisko Development (NYSE:OGG) & Freeport-McMoRan (NYSE:FCX)

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

Profitability

This table compares Freeport-McMoRan and Osisko Development’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Freeport-McMoRan	11.39%	10.63%	5.69%
Osisko Development	148.74%	11.53%	6.55%

Earnings & Valuation

This table compares Freeport-McMoRan and Osisko Development”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Freeport-McMoRan	$25.91 billion	4.24	$2.20 billion	$2.03	37.70
Osisko Development	$25.39 million	37.10	-$120.96 million	($0.12)	-25.67

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Freeport-McMoRan and Osisko Development, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Freeport-McMoRan	0	3	20	1	2.92
Osisko Development	1	0	1	1	2.67

Freeport-McMoRan presently has a consensus target price of $70.27, indicating a potential downside of 8.19%. Given Freeport-McMoRan’s stronger consensus rating and higher possible upside, equities analysts clearly believe Freeport-McMoRan is more favorable than Osisko Development.

Volatility and Risk

Freeport-McMoRan has a beta of 1.37, indicating that its stock price is 37% more volatile than the S&P 500. Comparatively, Osisko Development has a beta of 0.62, indicating that its stock price is 38% less volatile than the S&P 500.

Insider & Institutional Ownership

80.8% of Freeport-McMoRan shares are held by institutional investors. Comparatively, 15.2% of Osisko Development shares are held by institutional investors. 0.7% of Freeport-McMoRan shares are held by company insiders. Comparatively, 0.9% of Osisko Development shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Freeport-McMoRan beats Osisko Development on 9 of the 14 factors compared between the two stocks.

About Freeport-McMoRan

Freeport-McMoRan Inc. engages in the mining of mineral properties in North America, South America, and Indonesia. It primarily explores for copper, gold, molybdenum, silver, and other metals. The company's assets include the Grasberg minerals district in Indonesia; Morenci, Bagdad, Safford, Sierrita, and Miami in Arizona; Chino and Tyrone in New Mexico; and Henderson and Climax in Colorado, North America, as well as Cerro Verde in Peru and El Abra in Chile. 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 incorporated in 1987 and is headquartered in Phoenix, Arizona.

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.