First Quantum Minerals (FQVLF) versus Vale (VALE) Head-To-Head Comparison

First Quantum Minerals (NYSE: VALE) and Vale (NYSE:VALE) are both basic materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, risk, valuation and profitability.

Dividends

First Quantum Minerals pays an annual dividend of $0.01 per share and has a dividend yield of 0.1%. Vale pays an annual dividend of $0.09 per share and has a dividend yield of 0.7%. Vale pays out 6.7% of its earnings in the form of a dividend.

Profitability

This table compares First Quantum Minerals and Vale’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
First Quantum Minerals 0.41% 4.39% 2.09%
Vale 13.17% 17.47% 8.19%

Analyst Ratings

This is a summary of recent ratings and recommmendations for First Quantum Minerals and Vale, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
First Quantum Minerals 0 3 2 1 2.67
Vale 0 4 9 0 2.69

Vale has a consensus price target of $14.70, indicating a potential upside of 10.94%. Given Vale’s stronger consensus rating and higher possible upside, analysts clearly believe Vale is more favorable than First Quantum Minerals.

Institutional and Insider Ownership

0.0% of First Quantum Minerals shares are held by institutional investors. Comparatively, 20.0% of Vale shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Risk & Volatility

First Quantum Minerals has a beta of 3.26, indicating that its share price is 226% more volatile than the S&P 500. Comparatively, Vale has a beta of 1.75, indicating that its share price is 75% more volatile than the S&P 500.

Valuation and Earnings

This table compares First Quantum Minerals and Vale’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
First Quantum Minerals $3.31 billion 2.44 -$316.00 million N/A N/A
Vale $33.97 billion 2.04 $5.51 billion $1.35 9.81

Vale has higher revenue and earnings than First Quantum Minerals.

Summary

Vale beats First Quantum Minerals on 10 of the 15 factors compared between the two stocks.

First Quantum Minerals Company Profile

First Quantum Minerals Ltd. engages in the exploration, development, and production of mineral properties. It primarily explores for copper, nickel, gold, and zinc ores, as well as produces acid. The company operates in seven mines and one copper smelter, including the Ravensthorpe nickel mine in Australia; the Kansanshi copper-gold mine in Zambia; the Sentinel copper operation in North Western Province of Zambia; the Guelb Moghrein copper-gold mine in Mauritania; the Çayeli copper-zinc mine in Turkey; the Las Cruces copper mine in Spain; and the Pyhäsalmi copper-zinc mine in Finland. It also has interests in copper and nickel projects at various stages of development located in Panama, Argentina, Peru, and Zambia. The company was formerly known as First Quantum Ventures Ltd. and changed its name to First Quantum Minerals Ltd. in July 1996. First Quantum Minerals Ltd. was founded in 1983 and is based in Vancouver, Canada.

Vale Company Profile

Vale S.A., together with its subsidiaries, produces and sells iron ore and iron ore pallets for use as raw materials in steelmaking in Brazil and internationally. It operates through Ferrous Minerals, Coal, and Base Metals segments. The Ferrous Minerals segment produces and extracts iron ore and pellets, manganese, ferroalloys, and others ferrous products and services, as well as engages in the provision of related railroad, port, and terminal logistics services. The Coal segment is involved in the extraction of metallurgical and thermal coal; and provision of related logistic services. The Base Metals segment produces and extracts non-ferrous minerals, including nickel, as well as its by-products, such as ferro-nickel, cobalt, gold, silver, copper, precious metals, and others. The company was formerly known as Companhia Vale do Rio Doce and changed its name to Vale S.A. in May 2009. Vale S.A. was founded in 1942 and is headquartered in Rio de Janeiro, Brazil.

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