Nexa Resources (NYSE:NEXA – Get Free Report) and enCore Energy (NASDAQ:EU – Get Free Report) are both small-cap basic materials companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, institutional ownership, risk and earnings.
Earnings and Valuation
This table compares Nexa Resources and enCore Energy”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Nexa Resources | $2.77 billion | 0.23 | -$205.03 million | ($0.68) | -7.19 |
| enCore Energy | $58.33 million | 8.28 | -$61.39 million | ($0.35) | -7.37 |
Risk & Volatility
Nexa Resources has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500. Comparatively, enCore Energy has a beta of 1.85, meaning that its stock price is 85% more volatile than the S&P 500.
Institutional & Insider Ownership
20.9% of enCore Energy shares are owned by institutional investors. 3.9% of enCore Energy shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Profitability
This table compares Nexa Resources and enCore Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Nexa Resources | -3.26% | -6.54% | -1.60% |
| enCore Energy | -143.28% | -19.23% | -16.22% |
Analyst Ratings
This is a summary of current ratings and recommmendations for Nexa Resources and enCore Energy, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Nexa Resources | 3 | 2 | 0 | 0 | 1.40 |
| enCore Energy | 0 | 1 | 1 | 2 | 3.25 |
Nexa Resources presently has a consensus target price of $5.70, suggesting a potential upside of 16.56%. enCore Energy has a consensus target price of $4.00, suggesting a potential upside of 55.04%. Given enCore Energy’s stronger consensus rating and higher probable upside, analysts plainly believe enCore Energy is more favorable than Nexa Resources.
Summary
enCore Energy beats Nexa Resources on 10 of the 15 factors compared between the two stocks.
About Nexa Resources
Nexa Resources S.A., together with its subsidiaries, engages in the zinc mining and smelting business worldwide. The company operates in two segments, Mining and Smelting. It produces zinc, zamac, zinc oxide, and zincal, as well as by-products, such as copper, lead, silver, gold, copper sulfate, sulfuric acid, copper cementum, silver concentrate, slag aggregates, and cadmium/sponge deposits. The company owns and operates six polymetallic mines, including three located in the Central Andes of Peru; two located in the State of Minas Gerais in Brazil; and one located in the State of Mato Grosso in Brazil. It also owns and operates three zinc smelters comprising one located in Cajamarquilla in Peru; and two located in the State of Minas Gerais in Brazil, which recovers and produces metallic zinc, zinc oxide, and by-products, such as sulfuric acid. The company also exports its products. Its products are used in civil construction, transportation, energy, agriculture, health, and consumer goods industries. 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, Luxembourg. Nexa Resources S.A. operates as a subsidiary of Votorantim S.A.
About enCore Energy
enCore Energy Corp. engages in the acquisition, exploration, and development of uranium resource properties in the United States. It holds a 100% interest in Crownpoint and Hosta Butte uranium project area covers 3,020 acres located in the Grants Uranium Belt, New Mexico. The company also holds interest in the Marquez-Juan Tafoya property comprises 14,582 acres located in McKinley and Sandoval counties of New Mexico; and the Nose Rock project comprising 42 owned unpatented lode mining claims comprising approximately 800 acres located in McKinley County, New Mexico. In addition, it holds interest in the White Canyon District and Utah property package, including the Geitus, Blue Jay, Marcy Look, and Cedar Mountain projects located to the northwest of the White Mesa Mill at Blanding County, Utah. Further, the company holds a 100% interest in Dewey Burdock project comprises approximately 12,613 surface acres and 16,962 net mineral acres located in South Dakota; Gas Hills project consists of approximately 1,280 surface acres and 12,960 net mineral acres of unpatented lode mining claims located in Wyoming; and West Largo project consist of approximately 3,840 acres located in McKinley County, New Mexico. Additionally, it holds a 100% interest in Ambrosia Lake – Treeline property consists of deeded mineral rights totaling 24,555 acres and unpatented mining claims covering approximately 1,700 acres; and Checkerboard mineral rights covering a land position of approximately 300,000 acres located in the Grants Uranium District. The company was formerly known as Wolfpack Gold Corp. and changed its name to enCore Energy Corp. in August 2014. enCore Energy Corp. is headquartered in Corpus Christi, Texas.
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