Freeport-McMoran (NYSE: FCX) and Seabridge Gold (NYSE:SA) are both basic materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, institutional ownership, dividends, risk, valuation and profitability.

Risk and Volatility

Freeport-McMoran has a beta of 2.57, indicating that its share price is 157% more volatile than the S&P 500. Comparatively, Seabridge Gold has a beta of -0.2, indicating that its share price is 120% less volatile than the S&P 500.

Valuation & Earnings

This table compares Freeport-McMoran and Seabridge Gold’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Freeport-McMoran $15.31 billion 1.42 $5.20 billion $0.71 21.23
Seabridge Gold N/A N/A -$9.15 million ($0.08) -153.13

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.

Analyst Ratings

This is a summary of current recommendations for Freeport-McMoran and Seabridge Gold, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Freeport-McMoran 3 11 3 0 2.00
Seabridge Gold 0 0 0 0 N/A

Freeport-McMoran currently has a consensus target price of $14.31, suggesting a potential downside of 5.03%. Given Freeport-McMoran’s higher possible upside, equities research analysts clearly believe Freeport-McMoran is more favorable than Seabridge Gold.

Insider & Institutional Ownership

67.9% of Freeport-McMoran shares are owned by institutional investors. Comparatively, 25.9% of Seabridge Gold shares are owned by institutional investors. 1.4% of Freeport-McMoran shares are owned by company insiders. Comparatively, 12.8% of Seabridge Gold shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Freeport-McMoran and Seabridge Gold’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Freeport-McMoran 5.97% 10.45% 2.60%
Seabridge Gold N/A -1.97% -1.82%

Summary

Freeport-McMoran beats Seabridge Gold on 10 of the 11 factors compared between the two stocks.

Freeport-McMoran Company Profile

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.

Seabridge Gold Company Profile

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.

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