Head to Head Analysis: Teck Resources (TECK) versus Its Peers

Teck Resources (NYSE:TECK) is one of 1,984 publicly-traded companies in the “Metals & Mining” industry, but how does it compare to its peers? We will compare Teck Resources to related companies based on the strength of its risk, profitability, earnings, analyst recommendations, institutional ownership, dividends and valuation.

Risk & Volatility

Teck Resources has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500. Comparatively, Teck Resources’ peers have a beta of 0.96, suggesting that their average stock price is 4% less volatile than the S&P 500.

Profitability

This table compares Teck Resources and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Teck Resources	25.15%	11.93%	7.01%
Teck Resources Competitors	-1,161,736,352,322,426,600.00%	-52.87%	-2.06%

Dividends

Teck Resources pays an annual dividend of $0.36 per share and has a dividend yield of 0.6%. Teck Resources pays out 6.4% of its earnings in the form of a dividend. As a group, “Metals & Mining” companies pay a dividend yield of 10.0% and pay out 10.8% of their earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Teck Resources and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Teck Resources	0	10	6	0	2.38
Teck Resources Competitors	6414	22620	32328	1801	2.47

Teck Resources presently has a consensus price target of $75.25, indicating a potential upside of 19.63%. As a group, “Metals & Mining” companies have a potential upside of 24.50%. Given Teck Resources’ peers stronger consensus rating and higher possible upside, analysts clearly believe Teck Resources has less favorable growth aspects than its peers.

Valuation and Earnings

This table compares Teck Resources and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Teck Resources	$7.70 billion	$1.00 billion	11.25
Teck Resources Competitors	$4.78 billion	$278.94 million	-26.20

Teck Resources has higher revenue and earnings than its peers. Teck Resources is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Institutional & Insider Ownership

78.1% of Teck Resources shares are owned by institutional investors. Comparatively, 15.9% of shares of all “Metals & Mining” companies are owned by institutional investors. 0.1% of Teck Resources shares are owned by company insiders. Comparatively, 17.6% of shares of all “Metals & Mining” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Teck Resources beats its peers on 9 of the 15 factors compared.

About Teck Resources

Teck Resources Limited is a Canadian mining company focused primarily on copper and zinc. Its activities include exploring, developing, mining, processing and marketing metals used in construction, manufacturing and other industrial applications. The company has operations and interests in Canada, the United States, Chile and Peru. Its portfolio includes copper mines and projects, zinc mining at the Red Dog operation in Alaska, and Trail Operations in British Columbia, which processes zinc and lead concentrates and produces refined metals and related products.