Head-To-Head Review: Nexa Resources (NYSE:NEXA) & Franklin Mining (OTCMKTS:FMNJ)

Nexa Resources (NYSE:NEXA) and Franklin Mining (OTCMKTS:FMNJ) are both small-cap basic materials companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, profitability, analyst recommendations, institutional ownership, dividends, valuation and earnings.

Earnings & Valuation

This table compares Nexa Resources and Franklin Mining”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nexa Resources	$2.77 billion	0.23	-$205.03 million	($0.68)	-7.01
Franklin Mining	N/A	N/A	-$430,000.00	($0.03)	-0.04

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

Analyst Recommendations

This is a breakdown of recent recommendations for Nexa Resources and Franklin Mining, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nexa Resources	3	2	0	0	1.40
Franklin Mining	0	0	0	0	0.00

Nexa Resources presently has a consensus target price of $5.70, suggesting a potential upside of 19.50%. Given Nexa Resources’ stronger consensus rating and higher possible upside, equities analysts plainly believe Nexa Resources is more favorable than Franklin Mining.

Profitability

This table compares Nexa Resources and Franklin Mining’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nexa Resources	-3.26%	-6.54%	-1.60%
Franklin Mining	N/A	N/A	N/A

Volatility & Risk

Nexa Resources has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500. Comparatively, Franklin Mining has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500.

Summary

Franklin Mining beats Nexa Resources on 7 of the 10 factors compared between the two stocks.

About Nexa Resources

Nexa Resources S.A., together with its subsidiaries, engages in the zinc mining and smelting business worldwide. The company operates in two segments, Mining and Smelting. It produces zinc, zamac, zinc oxide, and zincal, as well as by-products, such as copper, lead, silver, gold, copper sulfate, sulfuric acid, copper cementum, silver concentrate, slag aggregates, and cadmium/sponge deposits. The company owns and operates six polymetallic mines, including three located in the Central Andes of Peru; two located in the State of Minas Gerais in Brazil; and one located in the State of Mato Grosso in Brazil. It also owns and operates three zinc smelters comprising one located in Cajamarquilla in Peru; and two located in the State of Minas Gerais in Brazil, which recovers and produces metallic zinc, zinc oxide, and by-products, such as sulfuric acid. The company also exports its products. Its products are used in civil construction, transportation, energy, agriculture, health, and consumer goods industries. The company was formerly known as VM Holding S.A. and changed its name to Nexa Resources S.A. in September 2017. The company was founded in 1956 and is based in Luxembourg, Luxembourg. Nexa Resources S.A. operates as a subsidiary of Votorantim S.A.

About Franklin Mining

Franklin Mining, Inc., a mining and exploration company, acquires and develops mineral properties. The company explores for gold, silver, lead, and zinc deposits. It owns interests in the La Joya mining concession in Bolivia; and Madre de Dios Area, Ch-Mine, and Los Totems project in Peru. The company was formerly known as WCM Capital, Inc. Franklin Mining, Inc. was founded in 1864 and is based in Carson City, Nevada.