Critical Contrast: Ero Copper (ERO) versus Its Competitors

Ero Copper (NYSE:ERO) is one of 1,989 public companies in the “Metals & Mining” industry, but how does it compare to its peers? We will compare Ero Copper to similar businesses based on the strength of its profitability, risk, institutional ownership, dividends, earnings, analyst recommendations and valuation.

Earnings & Valuation

This table compares Ero Copper and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Ero Copper	$785.80 million	$263.72 million	9.75
Ero Copper Competitors	$171.29 billion	$267.99 million	-19.82

Ero Copper’s peers have higher revenue and earnings than Ero Copper. Ero Copper is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Institutional & Insider Ownership

71.3% of Ero Copper shares are held by institutional investors. Comparatively, 16.0% of shares of all “Metals & Mining” companies are held by institutional investors. 17.6% of shares of all “Metals & Mining” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for Ero Copper and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ero Copper	0	9	6	2	2.59
Ero Copper Competitors	6263	22313	31878	1741	2.47

Ero Copper currently has a consensus price target of $32.33, indicating a potential upside of 18.06%. As a group, “Metals & Mining” companies have a potential upside of 44.45%. Given Ero Copper’s peers higher probable upside, analysts plainly believe Ero Copper has less favorable growth aspects than its peers.

Volatility & Risk

Ero Copper has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500. Comparatively, Ero Copper’s peers have a beta of 0.99, indicating that their average share price is 1% less volatile than the S&P 500.

Profitability

This table compares Ero Copper and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ero Copper	31.63%	27.33%	13.47%
Ero Copper Competitors	-1,174,432,924,478,955,600.00%	48.32%	-2.69%

Summary

Ero Copper beats its peers on 7 of the 13 factors compared.

Ero Copper Company Profile

Ero Copper Corp. engages in the exploration, development, and production of mining projects in Brazil. The company is involved in the production and sale of copper concentrate from the Caraíba operations located in the Curaçá Valley, northeastern Bahia state, Brazil, as well as gold and silver by-products. It also holds 100% interests in the Tucumã project, a copper development project located within southeastern Pará state; and the Xavantina Operations located in Mato Grosso state. Ero Copper Corp. was incorporated in 2016 and is headquartered in Vancouver, Canada.