Analyzing Seabridge Gold (SA) & Freeport-McMoran (FCX)
Seabridge Gold (NYSE: SA) and Freeport-McMoran (NYSE:FCX) are both basic materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, institutional ownership, earnings, valuation, risk and analyst recommendations.
Earnings & Valuation
This table compares Seabridge Gold and Freeport-McMoran’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Seabridge Gold||N/A||N/A||-$9.14 million||($0.08)||-155.00|
|Freeport-McMoran||$15.31 billion||1.44||$5.20 billion||$0.71||21.42|
Freeport-McMoran has higher revenue and earnings than Seabridge Gold. Seabridge Gold is trading at a lower price-to-earnings ratio than Freeport-McMoran, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Seabridge Gold has a beta of -0.16, indicating that its stock price is 116% less volatile than the S&P 500. Comparatively, Freeport-McMoran has a beta of 2.59, indicating that its stock price is 159% more volatile than the S&P 500.
This is a summary of recent ratings for Seabridge Gold and Freeport-McMoran, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Freeport-McMoran has a consensus price target of $14.31, indicating a potential downside of 5.90%. Given Freeport-McMoran’s higher probable upside, analysts clearly believe Freeport-McMoran is more favorable than Seabridge Gold.
Insider & Institutional Ownership
25.9% of Seabridge Gold shares are held by institutional investors. Comparatively, 67.9% of Freeport-McMoran shares are held by institutional investors. 12.8% of Seabridge Gold shares are held by company insiders. Comparatively, 1.4% of Freeport-McMoran shares are held 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.
This table compares Seabridge Gold and Freeport-McMoran’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Freeport-McMoran beats Seabridge Gold on 10 of the 11 factors compared between the two stocks.
About Seabridge Gold
Seabridge Gold Inc. (Seabridge) is a development-stage company. The Company is engaged in the acquisition and exploration of gold properties located in North America. As of December 31, 2016, the Company owned six properties with gold resources. Its material properties are its Kerr-Sulphurets-Mitchell (KSM) Project and its Courageous Lake Project. Its KSM Project is located within the Iskut-Stikine region of British Columbia, approximately 21 kilometers south-southeast of the former Eskay Creek Mine and approximately 65 kilometers north-northwest of Stewart, British Columbia. As of December 31, 2016, the KSM property consisted of three discontinuous claim blocks. These claim blocks are referred to as the KSM claim group; the Seabee/Tina claims, and the KSM placer claim block. As of December 31, 2016, the two claim blocks (KSM and Seabee/Tina) contained two mineral leases and 73 mineral claims, consisting of both cell and legacy claims.
Freeport-McMoRan Inc. (FCX) is a mining company. The Company operates through geographical assets with proven and probable reserves of copper, gold and molybdenum, and traded copper producer. The Company’s segments include refined copper products, copper in concentrate, gold, molybdenum, oil and other. The Company’s segments include the Morenci, Cerro Verde, Grasberg copper mines, the Rod & Refining operations and the United States (U.S.) Oil and Gas Operations. The Company has organized its operations into five divisions, which include North America copper mines, South America mining, Indonesia mining and Molybdenum mines. The Company’s portfolio of assets includes the Grasberg minerals district in Indonesia, copper and gold deposits, and mining operations in the Americas, including the large-scale Morenci minerals district in North America and the Cerro Verde operation in South America.
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