Freeport-McMoRan (FCX) & Redhawk Resources (RHWKF) Head-To-Head Analysis

Freeport-McMoRan (NYSE:FCX) and Redhawk Resources (OTCMKTS:RHWKF) are both basic materials companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, risk, valuation, profitability, institutional ownership and dividends.

Institutional and Insider Ownership

70.5% of Freeport-McMoRan shares are held by institutional investors. 1.1% of Freeport-McMoRan 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.

Analyst Recommendations

This is a summary of current ratings for Freeport-McMoRan and Redhawk Resources, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Freeport-McMoRan 3 10 6 0 2.16
Redhawk Resources 0 0 0 0 N/A

Freeport-McMoRan currently has a consensus target price of $16.15, indicating a potential upside of 31.41%.

Profitability

This table compares Freeport-McMoRan and Redhawk Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Freeport-McMoRan 12.12% 15.88% 5.74%
Redhawk Resources N/A N/A N/A

Earnings & Valuation

This table compares Freeport-McMoRan and Redhawk Resources’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Freeport-McMoRan $18.63 billion 0.96 $2.26 billion $1.52 8.09
Redhawk Resources N/A N/A N/A N/A N/A

Freeport-McMoRan has higher revenue and earnings than Redhawk Resources.

Dividends

Freeport-McMoRan pays an annual dividend of $0.20 per share and has a dividend yield of 1.6%. Redhawk Resources does not pay a dividend. Freeport-McMoRan pays out 13.2% of its earnings in the form of a dividend.

Summary

Freeport-McMoRan beats Redhawk Resources on 8 of the 9 factors compared between the two stocks.

About Freeport-McMoRan

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 Redhawk Resources

Redhawk Resources, Inc., together with its subsidiaries, engages in the acquisition, exploration, and development of mineral properties in the United States. The company explores for copper, molybdenum, silver, and gold deposits. It primarily holds a 100% interest in the Copper Creek project that comprises approximately 29 square miles of contiguous patented and unpatented mining claims, fee lands, and Arizona State Land Department mineral exploration permits located in San Manuel, Arizona. The company was formerly known as Annex Exploration Corp. and changed its name to Redhawk Resources, Inc. in March 1994. Redhawk Resources, Inc. was incorporated in 1983 and is headquartered in Vancouver, Canada.

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