Analyzing Nexa Resources (NYSE:NEXA) and EMX Royalty (NYSE:EMX)

Nexa Resources (NYSE:NEXAGet Rating) and EMX Royalty (NYSE:EMXGet Rating) are both small-cap basic materials companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, dividends, analyst recommendations and valuation.

Profitability

This table compares Nexa Resources and EMX Royalty’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nexa Resources 5.36% 8.87% 3.10%
EMX Royalty -19.11% 1.80% 1.27%

Earnings and Valuation

This table compares Nexa Resources and EMX Royalty’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nexa Resources $2.62 billion 0.32 $114.33 million $1.17 5.40
EMX Royalty $7.53 million 26.64 -$23.74 million ($0.05) -36.59

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

Institutional and Insider Ownership

7.3% of Nexa Resources shares are held by institutional investors. Comparatively, 20.4% of EMX Royalty shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Nexa Resources and EMX Royalty, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nexa Resources 0 2 0 0 2.00
EMX Royalty 0 0 1 0 3.00

Nexa Resources currently has a consensus price target of $9.90, suggesting a potential upside of 56.65%. EMX Royalty has a consensus price target of $4.50, suggesting a potential upside of 145.90%. Given EMX Royalty’s stronger consensus rating and higher probable upside, analysts plainly believe EMX Royalty is more favorable than Nexa Resources.

Risk & Volatility

Nexa Resources has a beta of 1.6, meaning that its share price is 60% more volatile than the S&P 500. Comparatively, EMX Royalty has a beta of 0.92, meaning that its share price is 8% less volatile than the S&P 500.

Summary

Nexa Resources beats EMX Royalty on 8 of the 13 factors compared between the two stocks.

About Nexa Resources

(Get Rating)

Nexa Resources S.A., together with its subsidiaries, engages in the zinc mining and smelting business. The company also produces zinc, silver, gold, copper cement, lead, sulfuric acid, sulfur dioxide, copper sulfate, and limestone deposits. It owns and operates five underground polymetallic mines, including three located in the Central Andes of Peru; and two located in the State of Minas Gerais in Brazil. The company also develops the Aripuanã project located in Mato Grosso, Brazil. It exports its products. 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. is a subsidiary of Votorantim S.A.

About EMX Royalty

(Get Rating)

EMX Royalty Corporation, together with its subsidiaries, engages in the exploring for, and generating royalties from, metals and minerals properties. It explores for gold, silver, platinum, palladium, copper, lead, zinc, nickel, cobalt, volcanogenic massive sulfide, molybdenum, and iron deposits. The company's royalty and exploration portfolio primarily consist of properties in North America, Turkey, Europe, Australia, New Zealand, South America, as well as Sweden, and Norway. The company was formerly known as Eurasian Minerals Inc. and changed its name to EMX Royalty Corporation in July 2017. EMX Royalty Corporation is headquartered in Vancouver, Canada.

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