Head-To-Head Comparison: Freeport-McMoRan (FCX) versus Its Competitors

Freeport-McMoRan (NYSE:FCX) is one of 1,984 public companies in the “Metals & Mining” industry, but how does it contrast to its competitors? We will compare Freeport-McMoRan to similar companies based on the strength of its valuation, analyst recommendations, institutional ownership, earnings, risk, dividends and profitability.

Dividends

Freeport-McMoRan pays an annual dividend of $0.30 per share and has a dividend yield of 0.5%. Freeport-McMoRan pays out 12.6% of its earnings in the form of a dividend. As a group, “Metals & Mining” companies pay a dividend yield of 10.7% and pay out 10.8% of their earnings in the form of a dividend. Freeport-McMoRan lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Earnings & Valuation

This table compares Freeport-McMoRan and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Freeport-McMoRan	$25.91 billion	$2.20 billion	26.42
Freeport-McMoRan Competitors	$4.80 billion	$280.15 million	-46.13

Freeport-McMoRan has higher revenue and earnings than its competitors. Freeport-McMoRan is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Institutional & Insider Ownership

80.8% of Freeport-McMoRan shares are owned by institutional investors. Comparatively, 15.9% of shares of all “Metals & Mining” companies are owned by institutional investors. 0.7% of Freeport-McMoRan shares are owned by company insiders. Comparatively, 17.5% of shares of all “Metals & Mining” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Freeport-McMoRan and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Freeport-McMoRan	0	4	20	1	2.88
Freeport-McMoRan Competitors	6398	22581	32277	1792	2.47

Freeport-McMoRan presently has a consensus price target of $75.30, suggesting a potential upside of 19.76%. As a group, “Metals & Mining” companies have a potential upside of 32.98%. Given Freeport-McMoRan’s competitors higher probable upside, analysts plainly believe Freeport-McMoRan has less favorable growth aspects than its competitors.

Risk and Volatility

Freeport-McMoRan has a beta of 1.38, suggesting that its share price is 38% more volatile than the S&P 500. Comparatively, Freeport-McMoRan’s competitors have a beta of 0.99, suggesting that their average share price is 1% less volatile than the S&P 500.

Profitability

This table compares Freeport-McMoRan and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Freeport-McMoRan	13.03%	12.09%	6.50%
Freeport-McMoRan Competitors	-1,168,050,136,845,918,000.00%	-53.15%	-2.11%

Summary

Freeport-McMoRan beats its competitors on 11 of the 15 factors compared.

Freeport-McMoRan Company Profile

Freeport-McMoRan Inc. engages in the mining of mineral properties in North America, South America, and Indonesia. It primarily explores for copper, gold, molybdenum, silver, and other metals. The company's assets include the Grasberg minerals district in Indonesia; Morenci, Bagdad, Safford, Sierrita, and Miami in Arizona; Chino and Tyrone 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 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.