Nexa Resources (NYSE:NEXA) and Silver Bull Resources (OTCMKTS:SVBL) are both small-cap basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, institutional ownership, profitability, valuation and earnings.
Insider & Institutional Ownership
10.4% of Nexa Resources shares are held by institutional investors. 7.7% of Silver Bull Resources shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This table compares Nexa Resources and Silver Bull Resources’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Nexa Resources||$2.49 billion||0.61||$74.86 million||$0.28||40.64|
|Silver Bull Resources||N/A||N/A||-$3.51 million||N/A||N/A|
Nexa Resources has higher revenue and earnings than Silver Bull Resources.
This table compares Nexa Resources and Silver Bull Resources’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Silver Bull Resources||N/A||-45.46%||-37.56%|
Nexa Resources pays an annual dividend of $0.53 per share and has a dividend yield of 4.7%. Silver Bull Resources does not pay a dividend. Nexa Resources pays out 189.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Volatility & Risk
Nexa Resources has a beta of 0.2, indicating that its stock price is 80% less volatile than the S&P 500. Comparatively, Silver Bull Resources has a beta of 0.26, indicating that its stock price is 74% less volatile than the S&P 500.
This is a breakdown of current recommendations for Nexa Resources and Silver Bull Resources, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Silver Bull Resources||0||0||0||0||N/A|
Nexa Resources currently has a consensus target price of $19.20, indicating a potential upside of 68.72%. Given Nexa Resources’ higher possible upside, analysts plainly believe Nexa Resources is more favorable than Silver Bull Resources.
Nexa Resources beats Silver Bull Resources on 9 of the 12 factors compared between the two stocks.
Nexa Resources Company Profile
Nexa Resources S.A., through its subsidiaries, engages in the zinc mining and smelting business in Latin America. It also produces copper, lead, silver and gold deposits. The company owns and operates five mines, including three located in the Central Andes of Peru; and two located in the state of Minas Gerais in Brazil. In addition, it refines byproducts, such as sulfuric acid, silver concentrate, copper cement, and copper sulfate. Nexa Resources S.A. also exports its products. 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 City, Luxembourg. Nexa Resources S.A. is a subsidiary of Votorantim S.A.
Silver Bull Resources Company Profile
Silver Bull Resources, Inc., an exploration stage company, acquires, develops, and explores for mineral properties in Mexico and Canada. It primarily explores for silver and zinc deposits. The company holds interest in the Sierra Mojada property that includes 20 concessions covering an area of 6,496 hectares located in Coahuila, Mexico. The company was formerly known as Metalline Mining Company and changed its name to Silver Bull Resources, Inc. in April 2011. Silver Bull Resources, Inc. was founded in 1993 and is based in Vancouver, Canada.
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