Freeport-McMoRan (NYSE:FCX) and Lundin Mining (OTCMKTS:LUNMF) are both basic materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, institutional ownership, risk, analyst recommendations and profitability.
This is a breakdown of recent ratings and target prices for Freeport-McMoRan and Lundin Mining, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Freeport-McMoRan currently has a consensus price target of $17.91, suggesting a potential upside of 34.78%. Given Freeport-McMoRan’s stronger consensus rating and higher probable upside, analysts plainly believe Freeport-McMoRan is more favorable than Lundin Mining.
Earnings and Valuation
This table compares Freeport-McMoRan and Lundin Mining’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Freeport-McMoRan||$16.40 billion||1.17||$1.82 billion||$1.17||11.36|
|Lundin Mining||$2.08 billion||1.78||$426.48 million||N/A||N/A|
Freeport-McMoRan has higher revenue and earnings than Lundin Mining.
This table compares Freeport-McMoRan and Lundin Mining’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Freeport-McMoRan pays an annual dividend of $0.20 per share and has a dividend yield of 1.5%. Lundin Mining pays an annual dividend of $0.09 per share and has a dividend yield of 1.8%. Freeport-McMoRan pays out 17.1% of its earnings in the form of a dividend.
Insider & Institutional Ownership
71.7% of Freeport-McMoRan shares are held by institutional investors. Comparatively, 0.0% of Lundin Mining shares are held by institutional investors. 1.1% of Freeport-McMoRan shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Volatility & Risk
Freeport-McMoRan has a beta of 2.48, indicating that its stock price is 148% more volatile than the S&P 500. Comparatively, Lundin Mining has a beta of 1.73, indicating that its stock price is 73% more volatile than the S&P 500.
Freeport-McMoRan beats Lundin Mining on 11 of the 15 factors compared between the two stocks.
Freeport-McMoRan Inc. engages in the mining of mineral properties in the United States, Indonesia, Peru, and Chile. The company primarily explores for copper, gold, molybdenum, silver, and other metals, as well as oil and gas. Its assets include the Grasberg minerals district in Indonesia; Morenci, Bagdad, Safford, Sierrita, and Miami in Arizona; Tyrone and Chino in New Mexico; and Henderson and Climax in Colorado, North America, as well as Cerro Verde and El Abra mines in South America. It also operates a portfolio of oil and gas assets comprising oil and natural gas production onshore in South Louisiana; and on the Gulf of Mexico shelf and oil production offshore California. As of December 31, 2017, the company's estimated consolidated recoverable proven and probable mineral reserves totaled 86.7 billion pounds of copper, 23.5 million ounces of gold, and 2.84 billion pounds of molybdenum, as well as estimated proved developed oil and natural gas reserves totaled 10.1 million barrels of oil equivalents. 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 founded in 1987 and is headquartered in Phoenix, Arizona.
About Lundin Mining
Lundin Mining Corporation, a diversified base metals mining company, engages in the exploration, development, and mining of mineral properties in Chile, the United States, Portugal, and Sweden. It primarily produces copper, zinc, and nickel, as well as gold, lead, silver, and other metals. The company holds 100% interest in the Eagle mine located in the United States; the Neves-Corvo mine located in Portugal; and the Zinkgruvan mine located in Sweden, as well as 80% interest in Candelaria and Ojos del Salado mining complex; and 24% interest the Freeport Cobalt Oy business, which includes a cobalt refinery located in Kokkola, Finland. The company was formerly known as South Atlantic Ventures Ltd. and changed its name to Lundin Mining Corporation in August 2004. Lundin Mining Corporation was incorporated in 1994 and is headquartered in Toronto, Canada.
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