Pure Energy Minerals (OTCMKTS:PEMIF) and Nexa Resources (NYSE:NEXA) are both small-cap basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, dividends, valuation and analyst recommendations.
Volatility and Risk
Pure Energy Minerals has a beta of 2.11, suggesting that its stock price is 111% more volatile than the S&P 500. Comparatively, Nexa Resources has a beta of 1.66, suggesting that its stock price is 66% more volatile than the S&P 500.
8.4% of Nexa Resources shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Pure Energy Minerals 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|
|Pure Energy Minerals||N/A||N/A||-$380,000.00||N/A||N/A|
|Nexa Resources||$2.33 billion||0.62||-$146.63 million||$0.36||30.11|
Pure Energy Minerals has higher earnings, but lower revenue than Nexa Resources.
This is a breakdown of current recommendations and price targets for Pure Energy Minerals and Nexa Resources, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Pure Energy Minerals||0||0||0||0||N/A|
Nexa Resources has a consensus price target of $6.90, indicating a potential downside of 36.35%. Given Nexa Resources’ higher possible upside, analysts clearly believe Nexa Resources is more favorable than Pure Energy Minerals.
This table compares Pure Energy Minerals and Nexa Resources’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Pure Energy Minerals||N/A||-1.57%||-1.56%|
Nexa Resources beats Pure Energy Minerals on 5 of the 9 factors compared between the two stocks.
Pure Energy Minerals Company Profile
Pure Energy Minerals Limited engages in the acquisition, exploration, and development of mineral properties. Its primary project is the Clayton Valley lithium brine project that includes 1,085 lithium placer claims covering an area of approximately 10,600 hectares located in Clayton Valley, Esmeralda County, Nevada. The company was formerly known as Harmony Gold Corp. and changed its name to Pure Energy Minerals Limited in October 2012. Pure Energy Minerals Limited is headquartered in Vancouver, Canada.
Nexa Resources Company Profile
Nexa Resources S.A., through its subsidiaries, engages in the zinc mining and smelting business. It also produces zinc, silver, gold, copper, cement, sulfuric acid, lead, agricultural lime, and copper sulfate deposits. The company owns and operates five underground polymetallic mines, including three located in the Central Andes of Peru; and two located in the state of Minas Gerais in Brazil. It also develops the AripuanÃ£ project located in Mato Grosso, Brazil. The company also exports its products. The company was formerly known as VM Holding S.A. and changed its name to Nexa Resources S.A. in September 2017. The company was founded in 1956 and is based in Luxembourg City, Luxembourg. Nexa Resources S.A. is a subsidiary of Votorantim S.A.
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