Contrasting Nexa Resources (NEXA) & Global Brass and Copper (BRSS)

Global Brass and Copper (NYSE: BRSS) and Nexa Resources (NYSE:NEXA) are both small-cap industrial products companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, dividends, profitability, analyst recommendations, valuation, risk and institutional ownership.

Insider & Institutional Ownership

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95.6% of Global Brass and Copper shares are owned by institutional investors. Comparatively, 16.1% of Nexa Resources shares are owned by institutional investors. 3.2% of Global Brass and Copper shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Global Brass and Copper and Nexa Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Global Brass and Copper 3.26% 46.79% 9.61%
Nexa Resources 6.75% 5.81% 2.82%

Valuation and Earnings

This table compares Global Brass and Copper and Nexa Resources’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Global Brass and Copper $1.56 billion 0.46 $50.90 million $2.78 11.62
Nexa Resources $2.45 billion 0.79 $126.88 million $1.42 12.15

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

Dividends

Global Brass and Copper pays an annual dividend of $0.24 per share and has a dividend yield of 0.7%. Nexa Resources pays an annual dividend of $0.47 per share and has a dividend yield of 2.7%. Global Brass and Copper pays out 8.6% of its earnings in the form of a dividend. Nexa Resources pays out 33.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Global Brass and Copper and Nexa Resources, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Global Brass and Copper 0 0 0 0 N/A
Nexa Resources 0 0 6 0 3.00

Nexa Resources has a consensus price target of $22.60, indicating a potential upside of 31.01%. Given Nexa Resources’ higher possible upside, analysts clearly believe Nexa Resources is more favorable than Global Brass and Copper.

Summary

Nexa Resources beats Global Brass and Copper on 8 of the 14 factors compared between the two stocks.

Global Brass and Copper Company Profile

Global Brass and Copper Holdings, Inc. converts, fabricates, processes, and distributes specialized non-ferrous products in the United States, the Asia Pacific, and Mexico. The company operates in three segments: Olin Brass, Chase Brass, and A.J. Oster. The Olin Brass segment manufactures, fabricates, and converts specialized copper and brass sheets, strips, foils, tubes, and fabricated products; and rerolls and forms other alloys, such as stainless steel, carbon steel, and aluminum. Its products are used in the building and housing, automotive, electronics/electrical components, munitions, and coinage markets. The Chase Brass segment manufactures and supplies brass rods in round, hexagonal, and other shapes for use in the building and housing, transportation, electronics/electrical components, and industrial machinery and equipment markets. The A.J. Oster segment processes and distributes primarily copper, brass, and aluminum sheets, strips, and coated products for use in the building and housing, automotive, and electronics/electrical components markets. The company sells its products under the Olin Brass, Chase Brass, A.J. Oster, Green Dot, and Eco Brass brands through its direct mill sales, distribution network, and third-party distributors. Global Brass and Copper Holdings, Inc. was founded in 2007 and is headquartered in Schaumburg, Illinois.

Nexa Resources Company Profile

Nexa Resources S.A., through its subsidiaries, primarily produces, refines, processes, and sells zinc in Peru and Brazil. It explores, extracts, produces, and trades zinc, copper, and lead concentrates through its mining sites located in the regions of Pasco, Ica, and Moquegua in Peru. The company also has copper mining project located in the Conchucos District, Ancash Region; poly-metallic mining project located in the Ancash Region; and copper mining project located in the Huancavelica Region, as well as zinc mines in Vazante and Paracatu. In addition, it refines byproducts, such as sulfuric acid, copper, and silver. The company serves chemical, petrochemical, rubber, pulp, metallurgy, mining, agricultural, and other sectors; and exports its zinc to Europe and the Americas. 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 headquartered in Luxembourg City, Luxembourg. Nexa Resources S.A. is a subsidiary of Votorantim S.A.

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