Analyzing Southern Copper (NYSE:SCCO) and Rock Energy Resources (OTCMKTS:RCKE)

Southern Copper (NYSE:SCCO) and Rock Energy Resources (OTCMKTS:RCKE) are both basic materials companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, earnings, profitability and risk.

Earnings and Valuation

This table compares Southern Copper and Rock Energy Resources’ top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Southern Copper	$9.90 billion	8.32	$2.43 billion	$3.14	33.90
Rock Energy Resources	N/A	N/A	N/A	N/A	N/A

Southern Copper has higher revenue and earnings than Rock Energy Resources.

Profitability

This table compares Southern Copper and Rock Energy Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Southern Copper	24.51%	30.85%	14.28%
Rock Energy Resources	N/A	N/A	N/A

Insider & Institutional Ownership

7.9% of Southern Copper shares are held by institutional investors. 0.1% of Southern Copper shares are held by company insiders. Comparatively, 88.0% of Rock Energy Resources shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and target prices for Southern Copper and Rock Energy Resources, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Southern Copper	3	1	1	0	1.60
Rock Energy Resources	0	0	0	0	N/A

Southern Copper currently has a consensus price target of $76.83, indicating a potential downside of 27.83%. Given Southern Copper’s higher probable upside, analysts clearly believe Southern Copper is more favorable than Rock Energy Resources.

Summary

Southern Copper beats Rock Energy Resources on 7 of the 8 factors compared between the two stocks.

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 operates as a subsidiary of Americas Mining Corporation.

About Rock Energy Resources

Rock Energy Resources, Inc., through its subsidiary, engages in the development of gold and associated mineral assets. It holds interests in the Red Arrow mine. The company was founded on April 16, 2004 and is headquartered in Houston, TX.