Critical Review: Nexa Resources (NYSE:NEXA) vs. Its Peers

Nexa Resources (NYSE: NEXA) is one of 86 publicly-traded companies in the “Integrated Mining” industry, but how does it weigh in compared to its competitors? We will compare Nexa Resources to similar businesses based on the strength of its dividends, analyst recommendations, risk, profitability, earnings, valuation and institutional ownership.

Insider & Institutional Ownership

28.6% of shares of all “Integrated Mining” companies are owned by institutional investors. 13.0% of shares of all “Integrated Mining” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Nexa Resources and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nexa Resources 2.88% 2.16% 1.09%
Nexa Resources Competitors -7,772.75% 4.09% 0.55%

Analyst Recommendations

This is a summary of current recommendations for Nexa Resources and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nexa Resources 0 0 5 0 3.00
Nexa Resources Competitors 880 2934 3086 84 2.34

Nexa Resources currently has a consensus price target of $21.52, indicating a potential upside of 7.60%. As a group, “Integrated Mining” companies have a potential downside of 4.78%. Given Nexa Resources’ stronger consensus rating and higher probable upside, research analysts plainly believe Nexa Resources is more favorable than its competitors.

Valuation & Earnings

This table compares Nexa Resources and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Nexa Resources $1.91 billion $93.16 million 39.22
Nexa Resources Competitors $11.16 billion $994.85 million -24.73

Nexa Resources’ competitors have higher revenue and earnings than Nexa Resources. Nexa Resources is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Nexa Resources Company Profile

Nexa Resources SA, formerly VM Holding SA, is a Luxembourg-based company engaged in the mineral resources industry. The Company is a metals and mining entity mainly engaged in zinc content production, and whose product portfolio also includes copper, lead, silver and gold. Its mining and smelting presence is located in Brazil, conducted by Votorantim Metais Zinco SA, and in Peru, conducted by Compania Minera Milpo SAA, and Votorantim Metais-Cajamarquilla SA. Its controlling shareholder is Votorantim SA, a Brazilian privately owned industrial conglomerate that holds ownership interests in metal, steel, cement, energy and pulp companies, among others.

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