Largo (NYSE:LGO – Get Free Report) and Southern Copper (NYSE:SCCO – Get Free Report) are both materials companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, profitability, dividends, risk, valuation, earnings and institutional ownership.
Profitability
This table compares Largo and Southern Copper’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Largo | -35.10% | -22.61% | -14.29% |
| Southern Copper | 35.87% | 49.04% | 25.81% |
Analyst Ratings
This is a breakdown of current recommendations and price targets for Largo and Southern Copper, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Largo | 0 | 0 | 2 | 0 | 3.00 |
| Southern Copper | 7 | 5 | 3 | 0 | 1.73 |
Risk and Volatility
Largo has a beta of 1.52, meaning that its stock price is 52% more volatile than the S&P 500. Comparatively, Southern Copper has a beta of 1.14, meaning that its stock price is 14% more volatile than the S&P 500.
Institutional & Insider Ownership
64.1% of Largo shares are held by institutional investors. Comparatively, 7.9% of Southern Copper shares are held by institutional investors. 0.3% of Largo shares are held by company insiders. Comparatively, 0.1% of Southern Copper shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Largo and Southern Copper”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Largo | $127.06 million | 0.44 | -$30.34 million | ($1.07) | -0.50 |
| Southern Copper | $13.42 billion | 12.67 | $4.33 billion | $6.84 | 29.80 |
Southern Copper has higher revenue and earnings than Largo. Largo is trading at a lower price-to-earnings ratio than Southern Copper, indicating that it is currently the more affordable of the two stocks.
Summary
Southern Copper beats Largo on 9 of the 14 factors compared between the two stocks.
About Largo
Largo Inc. engages in the development and sale of vanadium-based energy storage systems in Canada. The company operates through, Sales & Trading, Mine Properties, Corporate, Exploration and Evaluation Properties, and Largo Clean Energy and Largo Physical Vanadium Segments. Its products include VPURE+ vanadium flakes that are used in the production of master alloys and aerospace applications; VPURE vanadium flakes ferrovanadium and vanadium carbon nitride for the steel industry; and VPURE+ vanadium powder for catalyst applications. The company offers renewable energy storage solutions through Largo Clean Energy. Its products are sourced from vanadium deposits at the Maracás Menchen Mine in Brazil. The company was formerly known as Largo Resources Ltd. and changed its name to Largo Inc. in November 2021. The company was incorporated in 1988 and is headquartered in Toronto, Canada.
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.
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