Southern Copper (NYSE:SCCO – Get Free Report) and Largo (NYSE:LGO – Get Free Report) are both materials companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.
Earnings and Valuation
This table compares Southern Copper and Largo”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Southern Copper | $15.79 billion | 10.87 | $4.33 billion | $6.84 | 30.08 |
| Largo | $127.06 million | 0.39 | -$30.34 million | ($1.07) | -0.44 |
Risk and Volatility
Southern Copper has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500. Comparatively, Largo has a beta of 1.52, suggesting that its share price is 52% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Southern Copper and Largo, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Southern Copper | 7 | 5 | 3 | 0 | 1.73 |
| Largo | 0 | 0 | 2 | 0 | 3.00 |
Southern Copper currently has a consensus price target of $146.84, indicating a potential downside of 28.62%. Largo has a consensus price target of $2.10, indicating a potential upside of 342.48%. Given Largo’s stronger consensus rating and higher possible upside, analysts plainly believe Largo is more favorable than Southern Copper.
Profitability
This table compares Southern Copper and Largo’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Southern Copper | 35.87% | 49.04% | 25.81% |
| Largo | -35.10% | -22.61% | -14.29% |
Institutional and Insider Ownership
7.9% of Southern Copper shares are held by institutional investors. Comparatively, 64.1% of Largo shares are held by institutional investors. 0.1% of Southern Copper shares are held by company insiders. Comparatively, 0.3% of Largo shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Summary
Southern Copper beats Largo on 9 of the 14 factors compared between the two stocks.
About Southern Copper
Southern Copper Corporation engages in mining, exploring, smelting, and refining copper and other minerals in Peru, Mexico, Argentina, Ecuador, and Chile. The company is involved in the mining, milling, and flotation of copper ore to produce copper and molybdenum concentrates; smelting of copper concentrates to produce blister and anode copper; refining of anode copper to produce copper cathodes; production of molybdenum concentrate and sulfuric acid; production of refined silver, gold, and other materials; and mining and processing of zinc, copper, molybdenum, silver, gold, and lead. It operates the Toquepala and Cuajone open-pit mines, and a smelter and refinery in Peru; and La Caridad, an open-pit copper mine, as well as a copper ore concentrator, a SX-EW plant, a smelter, refinery, and a rod plant in Mexico. The company also operates Buenavista, an open-pit copper mine, as well as two copper concentrators and two operating SX-EW plants in Mexico. In addition, it operates underground mines that produce zinc, lead, copper, silver, and gold; a coal mine; and a zinc refinery. The company has interests in 156,818 hectares and 502,688 hectares of concessions in Peru and Mexico; and 168,200 hectares and 28,453 hectares of exploration concessions in Argentina and Chile. Southern Copper Corporation was incorporated in 1952 and is based in Phoenix, Arizona. Southern Copper Corporation is a subsidiary of Americas Mining Corporation.
About Largo
Largo Inc. engages in the development and sale of vanadium-based energy storage systems in Canada. The company operates through, Sales & Trading, Mine Properties, Corporate, Exploration and Evaluation Properties, and Largo Clean Energy and Largo Physical Vanadium Segments. Its products include VPURE+ vanadium flakes that are used in the production of master alloys and aerospace applications; VPURE vanadium flakes ferrovanadium and vanadium carbon nitride for the steel industry; and VPURE+ vanadium powder for catalyst applications. The company offers renewable energy storage solutions through Largo Clean Energy. Its products are sourced from vanadium deposits at the Maracás Menchen Mine in Brazil. The company was formerly known as Largo Resources Ltd. and changed its name to Largo Inc. in November 2021. The company was incorporated in 1988 and is headquartered in Toronto, Canada.
Receive News & Ratings for Southern Copper Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Southern Copper and related companies with MarketBeat.com's FREE daily email newsletter.
