Head to Head Contrast: Freeport-McMoRan (NYSE:FCX) vs. Toro Energy (OTCMKTS:TOEYF)

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

Volatility & Risk

Freeport-McMoRan has a beta of 1.63, indicating that its stock price is 63% more volatile than the S&P 500. Comparatively, Toro Energy has a beta of 0.21, indicating that its stock price is 79% less volatile than the S&P 500.

Profitability

This table compares Freeport-McMoRan and Toro Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Freeport-McMoRan	7.45%	7.37%	3.87%
Toro Energy	N/A	N/A	N/A

Valuation and Earnings

This table compares Freeport-McMoRan 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
Freeport-McMoRan	$25.46 billion	2.39	$1.89 billion	$1.32	32.04
Toro Energy	N/A	N/A	N/A	N/A	N/A

Freeport-McMoRan has higher revenue and earnings than Toro Energy.

Institutional and Insider Ownership

80.8% of Freeport-McMoRan shares are held by institutional investors. 0.8% of Freeport-McMoRan shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and target prices for Freeport-McMoRan and Toro Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Freeport-McMoRan	0	8	8	2	2.67
Toro Energy	0	0	0	0	0.00

Freeport-McMoRan currently has a consensus target price of $51.00, suggesting a potential upside of 20.60%. Given Freeport-McMoRan’s stronger consensus rating and higher possible upside, equities analysts plainly believe Freeport-McMoRan is more favorable than Toro Energy.

Summary

Freeport-McMoRan beats Toro Energy on 11 of the 11 factors compared between the two stocks.

About Freeport-McMoRan

Freeport-McMoRan Inc. engages in the mining of mineral properties in North America, South America, and Indonesia. It primarily explores for copper, gold, molybdenum, silver, and other metals. The company's assets include the Grasberg minerals district in Indonesia; Morenci, Bagdad, Safford, Sierrita, and Miami in Arizona; Chino and Tyrone in New Mexico; and Henderson and Climax in Colorado, North America, as well as Cerro Verde in Peru and El Abra in Chile. The company was formerly known as Freeport-McMoRan Copper & Gold Inc. and changed its name to Freeport-McMoRan Inc. in July 2014. Freeport-McMoRan Inc. was incorporated in 1987 and is headquartered in Phoenix, Arizona.

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.