Head-To-Head Comparison: Nexa Resources (NYSE:NEXA) and Capstone Copper (OTCMKTS:CSFFF)

Nexa Resources (NYSE:NEXA) and Capstone Copper (OTCMKTS:CSFFF) are both basic materials companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, institutional ownership, risk, dividends, analyst recommendations, profitability and earnings.

Insider & Institutional Ownership

0.6% of Capstone Copper shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations for Nexa Resources and Capstone Copper, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nexa Resources	3	5	0	0	1.63
Capstone Copper	0	0	0	0	0.00

Nexa Resources presently has a consensus target price of $6.29, suggesting a potential upside of 19.50%. Given Nexa Resources’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Nexa Resources is more favorable than Capstone Copper.

Valuation & Earnings

This table compares Nexa Resources and Capstone Copper”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nexa Resources	$2.77 billion	0.25	-$205.03 million	($0.12)	-43.83
Capstone Copper	$1.60 billion	0.00	$82.91 million	$0.11	N/A

Capstone Copper has lower revenue, but higher earnings than Nexa Resources. Nexa Resources is trading at a lower price-to-earnings ratio than Capstone Copper, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Nexa Resources and Capstone Copper’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nexa Resources	-0.57%	-8.80%	-2.08%
Capstone Copper	3.89%	2.62%	1.40%

Summary

Capstone Copper beats Nexa Resources on 6 of the 9 factors compared between the two stocks.

About Nexa Resources

Nexa Resources S.A., together with its subsidiaries, engages in the zinc mining and smelting business worldwide. The company operates in two segments, Mining and Smelting. It produces zinc, zamac, zinc oxide, and zincal, as well as by-products, such as copper, lead, silver, gold, copper sulfate, sulfuric acid, copper cementum, silver concentrate, slag aggregates, and cadmium/sponge deposits. The company owns and operates six polymetallic mines, including three located in the Central Andes of Peru; two located in the State of Minas Gerais in Brazil; and one located in the State of Mato Grosso in Brazil. It also owns and operates three zinc smelters comprising one located in Cajamarquilla in Peru; and two located in the State of Minas Gerais in Brazil, which recovers and produces metallic zinc, zinc oxide, and by-products, such as sulfuric acid. The company also exports its products. Its products are used in civil construction, transportation, energy, agriculture, health, and consumer goods industries. 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, Luxembourg. Nexa Resources S.A. operates as a subsidiary of Votorantim S.A.

About Capstone Copper

Capstone Mining Corp. engages in the exploration and production of base metals in the United States, Mexico, Canada, and Chile. The company explores for copper, molybdenum, silver, zinc, lead, iron, and gold deposits. It holds interests in the Pinto Valley, an open pit copper mine located in Arizona, the United States; and the Cozamin, a copper-silver underground mine located in the state of Zacatecas, Mexico. The company also owns a 100% interest in copper-iron-gold Santo Domingo development project in Region III, Chile. The company was formerly known as Capstone Gold Corp. and changed its name to Capstone Mining Corp. in February 2006. The company is headquartered in Vancouver, Canada.