Vox Royalty (NASDAQ:VOXR) vs. Nexa Resources (NYSE:NEXA) Critical Review

Nexa Resources (NYSE:NEXA) and Vox Royalty (NASDAQ:VOXR) are both small-cap materials companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, earnings, risk and profitability.

Insider & Institutional Ownership

46.0% of Vox Royalty shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Nexa Resources	8.02%	20.25%	5.28%
Vox Royalty	144.32%	13.41%	12.00%

Volatility & Risk

Nexa Resources has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500. Comparatively, Vox Royalty has a beta of 0.6, suggesting that its stock price is 40% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Nexa Resources and Vox Royalty, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nexa Resources	1	5	1	0	2.00
Vox Royalty	0	1	3	0	2.75

Nexa Resources presently has a consensus price target of $14.94, suggesting a potential upside of 18.38%. Vox Royalty has a consensus price target of $8.00, suggesting a potential upside of 59.68%. Given Vox Royalty’s stronger consensus rating and higher possible upside, analysts clearly believe Vox Royalty is more favorable than Nexa Resources.

Earnings and Valuation

This table compares Nexa Resources and Vox Royalty”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nexa Resources	$3.00 billion	0.56	$132.63 million	$2.09	6.04
Vox Royalty	$16.62 million	20.95	$5.89 million	$0.67	7.48

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

Summary

Vox Royalty beats Nexa Resources on 8 of the 13 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 Vox Royalty

Vox Royalty Corp. operates as a mining royalty and streaming company. The company holds a portfolio of 60 royalties and streaming assets. It operates in Australia, Canada, Peru, Brazil, South Africa, Mexico, and the United States. Vox Royalty Corp. was founded in 2014 and is based in Toronto, Canada.