Comparing A-Mark Precious Metals (AMRK) and Nexa Resources (NEXA)

Nexa Resources (NYSE: NEXA) and A-Mark Precious Metals (NASDAQ:AMRK) are both basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, earnings, risk and institutional ownership.

Profitability

This table compares Nexa Resources and A-Mark Precious Metals’ 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%
A-Mark Precious Metals 0.08% 7.75% 1.09%

Valuation and Earnings

This table compares Nexa Resources and A-Mark Precious Metals’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nexa Resources $1.91 billion 1.19 $93.16 million $0.58 34.91
A-Mark Precious Metals $6.99 billion 0.01 $7.08 million $0.93 15.22

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

Analyst Ratings

This is a summary of recent ratings for Nexa Resources and A-Mark Precious Metals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nexa Resources 0 0 5 0 3.00
A-Mark Precious Metals 0 1 1 1 3.00

Nexa Resources presently has a consensus price target of $21.52, suggesting a potential upside of 6.27%. A-Mark Precious Metals has a consensus price target of $20.90, suggesting a potential upside of 47.70%. Given A-Mark Precious Metals’ higher probable upside, analysts clearly believe A-Mark Precious Metals is more favorable than Nexa Resources.

Insider & Institutional Ownership

19.7% of A-Mark Precious Metals shares are held by institutional investors. 38.8% of A-Mark Precious Metals shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Dividends

A-Mark Precious Metals pays an annual dividend of $0.32 per share and has a dividend yield of 2.3%. Nexa Resources does not pay a dividend. A-Mark Precious Metals pays out 34.4% of its earnings in the form of a dividend.

Summary

A-Mark Precious Metals beats Nexa Resources on 8 of the 14 factors compared between the two stocks.

About Nexa Resources

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.

About A-Mark Precious Metals

A-Mark Precious Metals, Inc. is a precious metal trading company. The Company is a wholesaler of gold, silver, platinum and palladium bullion and related products, including bars, wafers, grain and coins. It distributes gold and silver coins and bars from sovereign and private mints; provides financing for the purchase of bullion and numismatics; offers storage for bullion, and offers complementary products, such as consignment, customized finance and liquidity programs, such as repurchase (Repo) accounts, and trade quotes in a variety of foreign currencies. It operates through various business units for accounting purposes, including Industrial, Coin and Bar, Trading, Finance, Collateral Finance Corporation, Transcontinental Depository Services and Logistics. It is an authorized distributor of gold and silver coins for sovereign mints and various private mints. The sovereign mints include the United States Mint, the Australian (Perth) Mint and the Austrian Mint, among others.

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