Critical Comparison: Nexa Resources (NEXA) vs. BHP Billiton (BHP)
BHP Billiton (NYSE: BHP) and Nexa Resources (NYSE:NEXA) are both basic materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, dividends, institutional ownership, valuation, analyst recommendations, profitability and earnings.
BHP Billiton pays an annual dividend of $1.72 per share and has a dividend yield of 3.7%. Nexa Resources does not pay a dividend. BHP Billiton pays out 77.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This table compares BHP Billiton and Nexa Resources’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent recommendations and price targets for BHP Billiton and Nexa Resources, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
BHP Billiton currently has a consensus target price of $38.60, suggesting a potential downside of 16.80%. Nexa Resources has a consensus target price of $21.52, suggesting a potential upside of 13.08%. Given Nexa Resources’ stronger consensus rating and higher possible upside, analysts plainly believe Nexa Resources is more favorable than BHP Billiton.
Insider & Institutional Ownership
3.3% of BHP Billiton shares are owned by institutional investors. Comparatively, 0.2% of Nexa Resources shares are owned by institutional investors. 0.0% of BHP Billiton shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares BHP Billiton and Nexa Resources’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|BHP Billiton||$38.29 billion||1.95||$5.89 billion||$2.21||21.00|
|Nexa Resources||$1.91 billion||1.12||$93.16 million||$0.58||32.81|
BHP Billiton has higher revenue and earnings than Nexa Resources. BHP Billiton is trading at a lower price-to-earnings ratio than Nexa Resources, indicating that it is currently the more affordable of the two stocks.
Nexa Resources beats BHP Billiton on 8 of the 15 factors compared between the two stocks.
BHP Billiton Company Profile
BHP Billiton Limited is a global resources company. The Company is a producer of various commodities, including iron ore, metallurgical coal, copper and uranium. Its segments include Petroleum, Copper, Iron Ore and Coal. The Petroleum segment is engaged in the exploration, development and production of oil and gas. The Copper segment is engaged in mining of copper, silver, lead, zinc, molybdenum, uranium and gold. The Iron Ore segment is engaged in mining of iron ore. The Coal segment is engaged in mining of metallurgical coal and thermal (energy) coal. Its businesses include Minerals Australia, Minerals Americas, Petroleum and Marketing. The Company extracts and processes minerals, oil and gas from its production operations located primarily in Australia and the Americas. The Company manages product distribution through its global logistics chain, including freight and pipeline transportation. Its businesses include Minerals Australia, Minerals Americas, Petroleum and Marketing.
Nexa Resources Company Profile
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.
Receive News & Ratings for BHP Billiton Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for BHP Billiton and related companies with MarketBeat.com's FREE daily email newsletter.