Critical Contrast: Ero Copper (ERO) versus Its Peers

Ero Copper (NYSE:ERO) is one of 1,989 public companies in the “Metals & Mining” industry, but how does it compare to its rivals? We will compare Ero Copper to similar businesses based on the strength of its valuation, profitability, institutional ownership, dividends, earnings, analyst recommendations and risk.

Institutional and Insider Ownership

71.3% of Ero Copper shares are held by institutional investors. Comparatively, 16.1% of shares of all “Metals & Mining” companies are held by institutional investors. 17.6% of shares of all “Metals & Mining” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

Ero Copper has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500. Comparatively, Ero Copper’s rivals have a beta of 0.99, meaning that their average share price is 1% less volatile than the S&P 500.

Earnings & Valuation

This table compares Ero Copper and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Ero Copper	$785.80 million	$263.72 million	12.21
Ero Copper Competitors	$4.90 billion	$267.28 million	-21.54

Ero Copper’s rivals have higher revenue and earnings than Ero Copper. Ero Copper is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Ero Copper and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ero Copper	29.79%	30.32%	15.17%
Ero Copper Competitors	-1,158,604,987,491,368,400.00%	48.22%	-2.34%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Ero Copper and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ero Copper	0	9	6	2	2.59
Ero Copper Competitors	6279	22348	31915	1744	2.47

Ero Copper presently has a consensus target price of $32.33, indicating a potential downside of 5.78%. As a group, “Metals & Mining” companies have a potential upside of 29.46%. Given Ero Copper’s rivals higher possible upside, analysts plainly believe Ero Copper has less favorable growth aspects than its rivals.

Summary

Ero Copper beats its rivals on 7 of the 13 factors compared.

Ero Copper Company Profile

Ero Copper Corp. engages in the exploration, development, and production of mining projects in Brazil. The company is involved in the production and sale of copper concentrate from the Caraíba operations located in the Curaçá Valley, northeastern Bahia state, Brazil, as well as gold and silver by-products. It also holds 100% interests in the Tucumã project, a copper development project located within southeastern Pará state; and the Xavantina Operations located in Mato Grosso state. Ero Copper Corp. was incorporated in 2016 and is headquartered in Vancouver, Canada.