Freeport-McMoRan (NYSE:FCX) versus First Quantum Minerals (OTCMKTS:FQVLF) Head to Head Analysis

First Quantum Minerals (OTCMKTS:FQVLF) and Freeport-McMoRan (NYSE:FCX) are both large-cap materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, institutional ownership, earnings and profitability.

Volatility and Risk

First Quantum Minerals has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500. Comparatively, Freeport-McMoRan has a beta of 1.38, suggesting that its stock price is 38% more volatile than the S&P 500.

Institutional and Insider Ownership

80.8% of Freeport-McMoRan shares are owned by institutional investors. 0.7% of Freeport-McMoRan shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares First Quantum Minerals and Freeport-McMoRan”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Quantum Minerals	$5.24 billion	3.64	-$28.00 million	$0.20	114.35
Freeport-McMoRan	$26.44 billion	3.14	$2.20 billion	$2.38	24.29

Freeport-McMoRan has higher revenue and earnings than First Quantum Minerals. Freeport-McMoRan is trading at a lower price-to-earnings ratio than First Quantum Minerals, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and price targets for First Quantum Minerals and Freeport-McMoRan, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Quantum Minerals	1	1	6	1	2.78
Freeport-McMoRan	0	4	20	1	2.88

Freeport-McMoRan has a consensus price target of $75.30, indicating a potential upside of 30.29%. Given Freeport-McMoRan’s stronger consensus rating and higher probable upside, analysts clearly believe Freeport-McMoRan is more favorable than First Quantum Minerals.

Profitability

This table compares First Quantum Minerals and Freeport-McMoRan’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Quantum Minerals	2.65%	-0.03%	-0.02%
Freeport-McMoRan	13.03%	12.09%	6.50%

Summary

Freeport-McMoRan beats First Quantum Minerals on 12 of the 13 factors compared between the two stocks.

About First Quantum Minerals

First Quantum Minerals Ltd., together with its subsidiaries, engages in the exploration, development, and production of mineral properties. It primarily explores for copper, nickel, pyrite, silver, gold, and zinc ores, as well as produces acid. The company has operating mines located in Zambia, Panama, Finland, Turkey, Spain, Australia, and Mauritania, as well as a development project in Zambia. It is exploring the Taca Taca copper-gold-molybdenum project in Argentina, as well as the Haquira copper deposit in Peru. The company was formerly known as First Quantum Ventures Ltd. and changed its name to First Quantum Minerals Ltd. in July 1996. The company is based in Vancouver, Canada.

About Freeport-McMoRan

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.