Head to Head Survey: Nexa Resources (NYSE:NEXA) versus Outokumpu (OTCMKTS:OUTKY)

Outokumpu (OTCMKTS:OUTKY) and Nexa Resources (NYSE:NEXA) are both materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, profitability, earnings, dividends and valuation.

Valuation and Earnings

This table compares Outokumpu and Nexa Resources”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Outokumpu	$6.19 billion	0.50	-$155.00 million	($0.10)	-33.00
Nexa Resources	$3.00 billion	0.59	$132.63 million	$2.09	6.35

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

Risk and Volatility

Outokumpu has a beta of 0.72, indicating that its share price is 28% less volatile than the S&P 500. Comparatively, Nexa Resources has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500.

Profitability

This table compares Outokumpu and Nexa Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Outokumpu	-1.48%	-2.38%	-1.41%
Nexa Resources	8.02%	20.25%	5.28%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Outokumpu and Nexa Resources, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Outokumpu	0	4	2	0	2.33
Nexa Resources	1	6	0	0	1.86

Nexa Resources has a consensus target price of $14.60, indicating a potential upside of 10.01%. Given Nexa Resources’ higher possible upside, analysts clearly believe Nexa Resources is more favorable than Outokumpu.

Summary

Nexa Resources beats Outokumpu on 9 of the 12 factors compared between the two stocks.

About Outokumpu

Outokumpu Oyj produces and sells various stainless steel products in Finland, other European countries, North America, the Asia-Pacific, and internationally. The company operates through three segments: Europe, Americas, and Ferrochrome. It offers cold rolled coils, strips, and sheets; hot rolled coils, strips, and plates; quarto plates; precision strips; and specialized components, such as welded stainless-steel I-beams, H-beams, hollow-section tubes, bent profiles, structural sections, hardened and customized press plates, suction roll shells, and blancs and disks. The company also provides stainless steel powder which includes Supra 316L, Dura 17-4PH, Ultra 904L, Therma 253MA, Dura 4116, and Ni-free austenitic stainless steel powder; and nickel-based alloys. Its products are used in various applications, including commercial kitchen, cooking, food industry, and home appliances; automotive and transportation; building and infrastructure; energy; marine; and heavy industries. The company was founded in 1910 and is headquartered in Helsinki, Finland.

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.