Nexa Resources (NYSE:NEXA – Get Rating) and International Tower Hill Mines (NYSE:THM – Get Rating) are both small-cap basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, valuation, analyst recommendations and dividends.
Risk and Volatility
Nexa Resources has a beta of 1.52, meaning that its stock price is 52% more volatile than the S&P 500. Comparatively, International Tower Hill Mines has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings for Nexa Resources and International Tower Hill Mines, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Nexa Resources | 0 | 2 | 1 | 0 | 2.33 |
| International Tower Hill Mines | 0 | 0 | 0 | 0 | N/A |
Profitability
This table compares Nexa Resources and International Tower Hill Mines’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Nexa Resources | 1.62% | 7.00% | 2.50% |
| International Tower Hill Mines | N/A | -5.21% | -5.18% |
Valuation & Earnings
This table compares Nexa Resources and International Tower Hill Mines’ gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Nexa Resources | $3.03 billion | 0.28 | $49.10 million | $0.37 | 17.03 |
| International Tower Hill Mines | N/A | N/A | -$5.98 million | ($0.02) | -25.51 |
Nexa Resources has higher revenue and earnings than International Tower Hill Mines. International Tower Hill Mines is trading at a lower price-to-earnings ratio than Nexa Resources, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
6.8% of Nexa Resources shares are held by institutional investors. Comparatively, 55.3% of International Tower Hill Mines shares are held by institutional investors. 2.7% of International Tower Hill Mines shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Summary
Nexa Resources beats International Tower Hill Mines on 10 of the 12 factors compared between the two stocks.
About Nexa Resources
Nexa Resources SA engages in the production of zinc in Latin America. It operates through the Mining and Smelting segments. The Mining segment comprises of mines located in Peru and Brazil, which includes mineral exploration activities and the production of zinc, copper, and lead concentrates. The Smelting segment consists of facilities that recover and produce metallic zinc, zinc oxide, and by-products. The company was founded on February 26, 2014 and is headquartered in Luxembourg.
About International Tower Hill Mines
International Tower Hill Mines Ltd. is a mineral exploration company, which engages in the acquisition and exploration of mineral properties. It holds the right to acquire interest in an advanced stage exploration project in Alaska, known as the Livengood Gold Project. The company was founded by Jeffrey A. Pontius on May 26, 1978 and is headquartered in Vancouver, Canada.
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