Critical Contrast: Canadian Zeolite (OTCMKTS:IZCFF) and Nexa Resources (NYSE:NEXA)

Nexa Resources (NYSE:NEXA) and Canadian Zeolite (OTCMKTS:IZCFF) are both basic materials companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, risk, valuation, dividends and profitability.

Analyst Ratings

This is a summary of recent recommendations for Nexa Resources and Canadian Zeolite, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nexa Resources	2	6	0	1	2.00
Canadian Zeolite	0	0	0	0	0.00

Nexa Resources currently has a consensus price target of $7.74, indicating a potential downside of 31.61%. Given Nexa Resources’ stronger consensus rating and higher probable upside, equities analysts plainly believe Nexa Resources is more favorable than Canadian Zeolite.

Earnings & Valuation

This table compares Nexa Resources and Canadian Zeolite”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	N/A	-$205.03 million	($0.12)	-94.35
Canadian Zeolite	$450,000.00	0.51	-$370,000.00	($0.01)	-0.55

Canadian Zeolite has lower revenue, but higher earnings than Nexa Resources. Nexa Resources is trading at a lower price-to-earnings ratio than Canadian Zeolite, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Nexa Resources	-0.57%	-8.80%	-2.08%
Canadian Zeolite	N/A	N/A	N/A

Risk and Volatility

Nexa Resources has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500. Comparatively, Canadian Zeolite has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500.

Summary

Canadian Zeolite beats Nexa Resources on 6 of the 10 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 Canadian Zeolite

International Zeolite Corp. explores for and develops mineral properties in Canada. It operates through two segments, Exploration and Development, and Retail and Commercial. The company markets and supplies natural zeolite and zeolite-infused products for agriculture, industrial, and home use; and develops, markets, and sells industrial commercial products from the production of its properties, as well as supplies raw materials from third party suppliers. It also has interests in the Bromley Creek zeolite project, which consists of one mineral lease and four mineral claims covering approximately 1,134.75 hectares located near Princeton, British Columbia; and the Sun Group zeolite project covering approximately 527.167 hectares located in British Columbia. The company was formerly known as Canadian Zeolite Corp. and changed its name to International Zeolite Corp. in March 2018. International Zeolite Corp. was incorporated in 1987 and is headquartered in Vancouver, Canada.