VALE vs. FCX, RIO, SCCO, BHP, APD, NEM, ECL, VNTRQ, VNTR, and DOW
Should you be buying Vale stock or one of its competitors? The main competitors of Vale include Freeport-McMoRan (FCX), Rio Tinto Group (RIO), Southern Copper (SCCO), BHP Group (BHP), Air Products and Chemicals (APD), Newmont (NEM), Ecolab (ECL), Venator Materials (VNTRQ), Venator Materials (VNTR), and DOW (DOW). These companies are all part of the "basic materials" sector.
Freeport-McMoRan (NYSE:FCX) and Vale (NYSE:VALE) are both large-cap basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, media sentiment, valuation, profitability, earnings, risk, institutional ownership, community ranking and analyst recommendations.
Vale has higher revenue and earnings than Freeport-McMoRan. Vale is trading at a lower price-to-earnings ratio than Freeport-McMoRan, indicating that it is currently the more affordable of the two stocks.
In the previous week, Freeport-McMoRan had 9 more articles in the media than Vale. MarketBeat recorded 13 mentions for Freeport-McMoRan and 4 mentions for Vale. Freeport-McMoRan's average media sentiment score of 1.16 beat Vale's score of 0.89 indicating that Vale is being referred to more favorably in the news media.
80.8% of Freeport-McMoRan shares are owned by institutional investors. Comparatively, 21.9% of Vale shares are owned by institutional investors. 0.8% of Freeport-McMoRan shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Freeport-McMoRan received 322 more outperform votes than Vale when rated by MarketBeat users. Likewise, 66.49% of users gave Freeport-McMoRan an outperform vote while only 61.17% of users gave Vale an outperform vote.
Vale has a net margin of 18.72% compared to Vale's net margin of 6.97%. Freeport-McMoRan's return on equity of 19.59% beat Vale's return on equity.
Freeport-McMoRan presently has a consensus price target of $51.00, indicating a potential downside of 3.28%. Vale has a consensus price target of $16.67, indicating a potential upside of 36.75%. Given Freeport-McMoRan's higher possible upside, analysts clearly believe Vale is more favorable than Freeport-McMoRan.
Freeport-McMoRan pays an annual dividend of $0.30 per share and has a dividend yield of 0.6%. Vale pays an annual dividend of $1.18 per share and has a dividend yield of 9.7%. Freeport-McMoRan pays out 26.5% of its earnings in the form of a dividend. Vale pays out 65.2% 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. Vale has raised its dividend for 1 consecutive years. Vale is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Freeport-McMoRan has a beta of 2.02, indicating that its stock price is 102% more volatile than the S&P 500. Comparatively, Vale has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500.
Summary
Freeport-McMoRan beats Vale on 11 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding VALE and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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