Financial Survey: Amerigo Resources (ARREF) vs. Freeport-McMoRan (FCX)

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

Profitability

How to Become a New Pot Stock Millionaire

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

Net Margins Return on Equity Return on Assets
Amerigo Resources 5.96% 8.73% 3.56%
Freeport-McMoRan 11.08% 16.57% 4.59%

Earnings and Valuation

This table compares Amerigo Resources and Freeport-McMoRan’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Amerigo Resources $134.03 million 1.04 $7.98 million $0.04 19.75
Freeport-McMoRan $16.40 billion 1.53 $1.82 billion $1.17 14.81

Freeport-McMoRan has higher revenue and earnings than Amerigo Resources. Freeport-McMoRan is trading at a lower price-to-earnings ratio than Amerigo Resources, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

69.8% of Freeport-McMoRan shares are owned by institutional investors. 1.3% of Freeport-McMoRan shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Amerigo Resources 0 0 0 0 N/A
Freeport-McMoRan 3 10 5 0 2.11

Freeport-McMoRan has a consensus price target of $17.26, suggesting a potential downside of 0.41%. Given Freeport-McMoRan’s higher possible upside, analysts plainly believe Freeport-McMoRan is more favorable than Amerigo Resources.

Risk & Volatility

Amerigo Resources has a beta of 2.19, indicating that its share price is 119% more volatile than the S&P 500. Comparatively, Freeport-McMoRan has a beta of 2.42, indicating that its share price is 142% more volatile than the S&P 500.

Summary

Freeport-McMoRan beats Amerigo Resources on 12 of the 13 factors compared between the two stocks.

About Amerigo Resources

Amerigo Resources Ltd., through its subsidiary, Minera Valle Central S.A., produces and sells copper and molybdenum concentrates in Chile. The company was formerly known as Golden Temple Mining Corp. and changed its name to Amerigo Resources Ltd. in March 2002. Amerigo Resources Ltd. was founded in 1984 and is headquartered in Vancouver, Canada.

About Freeport-McMoRan

Freeport-McMoRan Inc. engages in the mining of mineral properties in the United States, Indonesia, Peru, and Chile. The company primarily explores for copper, gold, molybdenum, silver, and other metals, as well as oil and gas. Its assets include the Grasberg minerals district in Indonesia; Morenci, Bagdad, Safford, Sierrita, and Miami in Arizona; Tyrone and Chino in New Mexico; and Henderson and Climax in Colorado, North America, as well as Cerro Verde and El Abra mines in South America. It also operates a portfolio of oil and gas assets comprising oil and natural gas production onshore in South Louisiana; and on the Gulf of Mexico shelf and oil production offshore California. As of December 31, 2017, the company's estimated consolidated recoverable proven and probable mineral reserves totaled 86.7 billion pounds of copper, 23.5 million ounces of gold, and 2.84 billion pounds of molybdenum, as well as estimated proved developed oil and natural gas reserves totaled 10.1 million barrels of oil equivalents. 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 founded in 1987 and is headquartered in Phoenix, Arizona.

Receive News & Ratings for Amerigo Resources Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Amerigo Resources and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply