Critical Contrast: Nexa Resources (NYSE:NEXA) & Dakota Gold (NYSE:DC)

Nexa Resources (NYSE:NEXA – Get Rating) and Dakota Gold (NYSE:DC – Get Rating) are both small-cap basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, risk, institutional ownership, earnings, profitability and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Nexa Resources	1.62%	7.00%	2.50%
Dakota Gold	N/A	N/A	N/A

Institutional & Insider Ownership

6.8% of Nexa Resources shares are held by institutional investors. Comparatively, 23.7% of Dakota Gold shares are held by institutional investors. 30.0% of Dakota Gold shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Nexa Resources and Dakota Gold’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nexa Resources	$3.03 billion	0.24	$49.10 million	$0.37	15.03
Dakota Gold	N/A	N/A	N/A	N/A	N/A

Nexa Resources has higher revenue and earnings than Dakota Gold.

Analyst Recommendations

This is a breakdown of current recommendations for Nexa Resources and Dakota Gold, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nexa Resources	0	2	1	0	2.33
Dakota Gold	0	0	2	0	3.00

Nexa Resources currently has a consensus price target of $8.27, suggesting a potential upside of 48.68%. Dakota Gold has a consensus price target of $5.25, suggesting a potential upside of 52.17%. Given Dakota Gold’s stronger consensus rating and higher probable upside, analysts plainly believe Dakota Gold is more favorable than Nexa Resources.

Summary

Dakota Gold beats Nexa Resources on 5 of the 9 factors compared between the two stocks.

About Nexa Resources

(Get Rating)

Nexa Resources SA engages in the production of zinc in Latin America. It operates through the Mining and Smelting segments. The Mining segment comprises of mines located in Peru and Brazil, which includes mineral exploration activities and the production of zinc, copper, and lead concentrates. The Smelting segment consists of facilities that recover and produce metallic zinc, zinc oxide, and by-products. The company was founded on February 26, 2014 and is headquartered in Luxembourg.

About Dakota Gold

(Get Rating)

Dakota Gold Corp. engages in the acquisition and exploration of mineral properties. It primarily explores for gold deposits. The company holds 100% interest in the Blind Gold, City Creek, Homestake Paleoplacer, Tinton, West Corridor, Ragged Top, Poorman Anticline, Maitland, and South Lead/Whistler Gulch projects located Homestake District, South Dakota. It also holds an option to acquire 100% interest in the Barrick Option and the Richmond Hill Option projects situated in Homestake District, South Dakota. Dakota Gold Corp. was incorporated in 2017 and is based in Lead, South Dakota.