Ero Copper (NYSE:ERO) and Amerigo Resources (OTCMKTS:ARREF) Head-To-Head Review

Ero Copper (NYSE:ERO) and Amerigo Resources (OTCMKTS:ARREF) are both small-cap basic materials companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.

Institutional & Insider Ownership

71.3% of Ero Copper shares are held by institutional investors. 19.3% of Amerigo Resources shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk & Volatility

Ero Copper has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500. Comparatively, Amerigo Resources has a beta of 1.84, indicating that its stock price is 84% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Ero Copper and Amerigo Resources, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ero Copper	0	3	6	1	2.80
Amerigo Resources	0	0	0	0	0.00

Ero Copper presently has a consensus target price of $19.00, suggesting a potential upside of 12.03%. Given Ero Copper’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Ero Copper is more favorable than Amerigo Resources.

Valuation & Earnings

This table compares Ero Copper and Amerigo Resources”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ero Copper	$470.26 million	3.74	-$68.47 million	$1.37	12.38
Amerigo Resources	$192.80 million	1.46	$19.24 million	$0.11	15.82

Amerigo Resources has lower revenue, but higher earnings than Ero Copper. Ero Copper is trading at a lower price-to-earnings ratio than Amerigo Resources, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Ero Copper and Amerigo Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ero Copper	26.63%	17.96%	8.06%
Amerigo Resources	8.74%	15.93%	8.31%

Summary

Ero Copper beats Amerigo Resources on 10 of the 15 factors compared between the two stocks.

About Ero Copper

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.

About Amerigo Resources

Amerigo Resources Ltd., through its subsidiary, Minera Valle Central S.A., engages in the production and sale of copper and molybdenum concentrates from Codelco's El Teniente underground mine in Chile. The company was formerly known as Golden Temple Mining Corp. and changed its name to Amerigo Resources Ltd. in March 2002. The company was incorporated in 1984 and is headquartered in Vancouver, Canada.