Financial Review: Pure Energy Minerals (OTCMKTS:PEMIF) vs. Freeport-McMoRan (NYSE:FCX)

Pure Energy Minerals (OTCMKTS:PEMIF) and Freeport-McMoRan (NYSE:FCX) are both basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.

Earnings and Valuation

This table compares Pure Energy Minerals and Freeport-McMoRan’s top-line revenue, earnings per share 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
Freeport-McMoRan $14.40 billion 3.97 -$239.00 million $0.02 1,961.00

Pure Energy Minerals has higher earnings, but lower revenue than Freeport-McMoRan.

Analyst Recommendations

This is a summary of current ratings and price targets for Pure Energy Minerals and Freeport-McMoRan, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pure Energy Minerals 0 0 0 0 N/A
Freeport-McMoRan 0 5 11 1 2.76

Freeport-McMoRan has a consensus target price of $27.00, suggesting a potential downside of 31.16%. Given Freeport-McMoRan’s higher probable upside, analysts clearly believe Freeport-McMoRan is more favorable than Pure Energy Minerals.

Volatility and Risk

Pure Energy Minerals has a beta of 2.11, indicating that its stock price is 111% more volatile than the S&P 500. Comparatively, Freeport-McMoRan has a beta of 2.27, indicating that its stock price is 127% more volatile than the S&P 500.

Profitability

This table compares Pure Energy Minerals and Freeport-McMoRan’s 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%
Freeport-McMoRan -0.73% 1.56% 0.67%

Institutional and Insider Ownership

72.3% of Freeport-McMoRan shares are held by institutional investors. 1.0% of Freeport-McMoRan shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Freeport-McMoRan beats Pure Energy Minerals on 9 of the 11 factors compared between the two stocks.

About Pure Energy Minerals

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.

About Freeport-McMoRan

Freeport-McMoRan Inc. engages in the mining of mineral properties in North America, South America, and Indonesia. 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 in Peru and El Abra in Chile. The company also operates a portfolio of oil and gas properties primarily located in offshore California and the Gulf of Mexico. As of December 31, 2020, it operated approximately 165 wells. 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 incorporated in 1987 and is headquartered in Phoenix, Arizona.

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