Head-To-Head Review: Nexa Resources (NEXA) & McEwen Mining (MUX)

Nexa Resources (NYSE: NEXA) and McEwen Mining (NYSE:MUX) are both basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their dividends, risk, analyst recommendations, earnings, profitability, institutional ownership and valuation.

Earnings & Valuation

This table compares Nexa Resources and McEwen Mining’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nexa Resources $1.91 billion 1.19 $93.16 million $0.58 34.67
McEwen Mining $60.39 million 12.35 $21.05 million ($0.06) -37.33

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

Insider & Institutional Ownership

27.7% of McEwen Mining shares are held by institutional investors. 26.1% of McEwen Mining shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Nexa Resources 2.88% 2.16% 1.09%
McEwen Mining -31.71% -4.25% -3.79%

Analyst Ratings

This is a breakdown of recent recommendations for Nexa Resources and McEwen Mining, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nexa Resources 0 0 5 0 3.00
McEwen Mining 0 0 3 0 3.00

Nexa Resources currently has a consensus target price of $21.52, indicating a potential upside of 7.01%. McEwen Mining has a consensus target price of $4.00, indicating a potential upside of 78.57%. Given McEwen Mining’s higher possible upside, analysts plainly believe McEwen Mining is more favorable than Nexa Resources.

Summary

Nexa Resources beats McEwen Mining on 8 of the 12 factors compared between the two stocks.

About Nexa Resources

Nexa Resources SA, formerly VM Holding SA, is a Luxembourg-based company engaged in the mineral resources industry. The Company is a metals and mining entity mainly engaged in zinc content production, and whose product portfolio also includes copper, lead, silver and gold. Its mining and smelting presence is located in Brazil, conducted by Votorantim Metais Zinco SA, and in Peru, conducted by Compania Minera Milpo SAA, and Votorantim Metais-Cajamarquilla SA. Its controlling shareholder is Votorantim SA, a Brazilian privately owned industrial conglomerate that holds ownership interests in metal, steel, cement, energy and pulp companies, among others.

About McEwen Mining

McEwen Mining Inc. is a mining and minerals production and exploration company. The Company is focused on precious and base metals in Argentina, Mexico and the United States. The Company’s segments include Mexico, Minera Santa Cruz S.A. (MSC), Nevada and Los Azules. The Mexico Operations segment includes properties, such as El Gallo 1 mine and the El Gallo 2 project. The MSC segment includes properties, such as the San Jose mine and other concessions located around the mine. The Company’s properties in Nevada segment include Gold Bar project and exploration properties. The Gold Bar project is a proposed mine project. The Los Azules segment includes various properties, such as Los Azules project, Chonchones project, Laganoso project, La Cerrada project and Other Argentina properties. The Los Azules copper project is an advanced-stage porphyry copper exploration project located in the cordilleran region of San Juan Province, Argentina near the border with Chile.

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