Southern Copper (NYSE:SCCO) versus New Found Gold (NYSE:NFGC) Head-To-Head Contrast

Southern Copper (NYSE:SCCO) and New Found Gold (NYSE:NFGC) are both materials companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, analyst recommendations, dividends, risk, earnings, valuation and institutional ownership.

Insider & Institutional Ownership

7.9% of Southern Copper shares are held by institutional investors. Comparatively, 3.4% of New Found Gold shares are held by institutional investors. 0.1% of Southern Copper shares are held by company insiders. 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.

Valuation and Earnings

This table compares Southern Copper and New Found Gold”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Southern Copper	$13.42 billion	10.94	$4.33 billion	$7.64	23.04
New Found Gold	$31.42 million	22.23	-$59.18 million	($0.20)	-9.05

Southern Copper has higher revenue and earnings than New Found Gold. New Found Gold is trading at a lower price-to-earnings ratio than Southern Copper, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Southern Copper and New Found Gold, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Southern Copper	6	4	3	0	1.77
New Found Gold	0	1	0	0	2.00

Southern Copper presently has a consensus target price of $159.47, suggesting a potential downside of 9.41%. Given Southern Copper’s higher probable upside, equities research analysts clearly believe Southern Copper is more favorable than New Found Gold.

Profitability

This table compares Southern Copper and New Found Gold’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Southern Copper	37.16%	51.61%	27.33%
New Found Gold	N/A	-82.80%	-68.88%

Risk and Volatility

Southern Copper has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500. Comparatively, New Found Gold has a beta of 1.36, meaning that its stock price is 36% more volatile than the S&P 500.

Summary

Southern Copper beats New Found Gold on 11 of the 14 factors compared between the two stocks.

About Southern Copper

Southern Copper Corporation engages in mining, exploring, smelting, and refining copper and other minerals in Peru, Mexico, Argentina, Ecuador, and Chile. The company is involved in the mining, milling, and flotation of copper ore to produce copper and molybdenum concentrates; smelting of copper concentrates to produce blister and anode copper; refining of anode copper to produce copper cathodes; production of molybdenum concentrate and sulfuric acid; production of refined silver, gold, and other materials; and mining and processing of zinc, copper, molybdenum, silver, gold, and lead. It operates the Toquepala and Cuajone open-pit mines, and a smelter and refinery in Peru; and La Caridad, an open-pit copper mine, as well as a copper ore concentrator, a SX-EW plant, a smelter, refinery, and a rod plant in Mexico. The company also operates Buenavista, an open-pit copper mine, as well as two copper concentrators and two operating SX-EW plants in Mexico. In addition, it operates underground mines that produce zinc, lead, copper, silver, and gold; a coal mine; and a zinc refinery. The company has interests in 156,818 hectares and 502,688 hectares of concessions in Peru and Mexico; and 168,200 hectares and 28,453 hectares of exploration concessions in Argentina and Chile. Southern Copper Corporation was incorporated in 1952 and is based in Phoenix, Arizona. Southern Copper Corporation is a subsidiary of Americas Mining Corporation.

About New Found Gold

New Found Gold Corp., a mineral exploration company, engages in the identification, evaluation, acquisition, and exploration of mineral properties in the Provinces of Newfoundland and Labrador, and Ontario. It primarily explores for gold deposit. The company holds 100% interests in the Queensway project that includes 96 mineral licenses and 6,659 claims covering an area of 166,475 hectares of land located near Gander, Newfoundland; and the Kingsway project located in Gander, Newfoundland. The company was formerly known as Palisade Resources Corp. and changed its name to New Found Gold Corp. in June 2017. New Found Gold Corp. was incorporated in 2016 and is headquartered in Vancouver, Canada.