Head-To-Head Contrast: Toro Energy (OTCMKTS:TOEYF) and Southern Copper (NYSE:SCCO)

Southern Copper (NYSE:SCCO) and Toro Energy (OTCMKTS:TOEYF) are both basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, valuation, earnings, profitability, analyst recommendations, dividends and institutional ownership.

Valuation & Earnings

This table compares Southern Copper and Toro Energy”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Southern Copper	$11.43 billion	6.59	$3.38 billion	$4.57	20.70
Toro Energy	N/A	N/A	N/A	N/A	N/A

Southern Copper has higher revenue and earnings than Toro Energy.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Southern Copper and Toro Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Southern Copper	3	4	0	0	1.57
Toro Energy	0	0	0	0	0.00

Southern Copper presently has a consensus target price of $91.00, indicating a potential downside of 3.79%. Given Southern Copper’s stronger consensus rating and higher possible upside, analysts clearly believe Southern Copper is more favorable than Toro Energy.

Insider and Institutional Ownership

7.9% of Southern Copper shares are held by institutional investors. 0.1% of Southern Copper shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Southern Copper and Toro Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Southern Copper	30.37%	38.08%	18.88%
Toro Energy	N/A	N/A	N/A

Risk and Volatility

Southern Copper has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.Comparatively, Toro Energy has a beta of 0.21, indicating that its share price is 79% less volatile than the S&P 500.

Summary

Southern Copper beats Toro Energy on 9 of the 9 factors compared between the two stocks.

About Southern Copper

Southern Copper Corporation engages in mining, exploring, smelting, and refining copper and other minerals in Peru, Mexico, Argentina, Ecuador, and Chile. The company is involved in the mining, milling, and flotation of copper ore to produce copper and molybdenum concentrates; smelting of copper concentrates to produce blister and anode copper; refining of anode copper to produce copper cathodes; production of molybdenum concentrate and sulfuric acid; production of refined silver, gold, and other materials; and mining and processing of zinc, copper, molybdenum, silver, gold, and lead. It operates the Toquepala and Cuajone open-pit mines, and a smelter and refinery in Peru; and La Caridad, an open-pit copper mine, as well as a copper ore concentrator, a SX-EW plant, a smelter, refinery, and a rod plant in Mexico. The company also operates Buenavista, an open-pit copper mine, as well as two copper concentrators and two operating SX-EW plants in Mexico. In addition, it operates underground mines that produce zinc, lead, copper, silver, and gold; a coal mine; and a zinc refinery. The company has interests in 156,818 hectares and 502,688 hectares of concessions in Peru and Mexico; and 168,200 hectares and 28,453 hectares of exploration concessions in Argentina and Chile. Southern Copper Corporation was incorporated in 1952 and is based in Phoenix, Arizona. Southern Copper Corporation is a subsidiary of Americas Mining Corporation.

About Toro Energy

Toro Energy Limited engages in the exploration, evaluation, and development of uranium properties in Australia. The company explores for uranium, nickel, gold, and base metals. Its flagship project is the Wiluna uranium project located in the northern goldfields region of Western Australia. Toro Energy Limited is headquartered in West Perth, Australia. Toro Energy Limited operates as a subsidiary of Mega Uranium Ltd.