Analyzing Toro Energy (OTCMKTS:TOEYF) and Southern Copper (NYSE:SCCO)

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

Insider & Institutional Ownership

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

Volatility & Risk

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Toro Energy	N/A	N/A	N/A	N/A	N/A
Southern Copper	$11.43 billion	6.86	$3.38 billion	$4.57	21.36

Southern Copper has higher revenue and earnings than Toro Energy.

Profitability

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

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Toro Energy and Southern Copper, as provided by MarketBeat.com.

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

Southern Copper has a consensus price target of $91.00, indicating a potential downside of 6.76%. Given Southern Copper’s stronger consensus rating and higher possible upside, analysts clearly believe Southern Copper is more favorable than Toro Energy.

Summary

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

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.

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.