Southern Copper (NYSE:SCCO – Get Rating) and International Tower Hill Mines (NYSE:THM – Get Rating) are both basic materials companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, profitability, institutional ownership, risk, analyst recommendations, earnings and valuation.
Institutional and Insider Ownership
7.0% of Southern Copper shares are held by institutional investors. Comparatively, 55.3% of International Tower Hill Mines shares are held by institutional investors. 0.1% of Southern Copper shares are held by insiders. Comparatively, 2.7% of International Tower Hill Mines shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
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Profitability
This table compares Southern Copper and International Tower Hill Mines' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Southern Copper | 25.56% | 32.37% | 14.60% |
| International Tower Hill Mines | N/A | -5.21% | -5.18% |
Analyst Recommendations
This is a breakdown of current ratings for Southern Copper and International Tower Hill Mines, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Southern Copper | 2 | 3 | 2 | 0 | 2.00 |
| International Tower Hill Mines | 0 | 0 | 0 | 0 | N/A |
Southern Copper presently has a consensus target price of $59.00, indicating a potential downside of 20.76%. Given Southern Copper's higher possible upside, equities research analysts clearly believe Southern Copper is more favorable than International Tower Hill Mines.
Volatility & Risk
Southern Copper has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500. Comparatively, International Tower Hill Mines has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500.
Earnings and Valuation
This table compares Southern Copper and International Tower Hill Mines' revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Southern Copper | $10.93 billion | 5.26 | $3.40 billion | $3.33 | 22.36 |
| International Tower Hill Mines | N/A | N/A | -$5.98 million | ($0.02) | -32.50 |
Southern Copper has higher revenue and earnings than International Tower Hill Mines. International Tower Hill Mines is trading at a lower price-to-earnings ratio than Southern Copper, indicating that it is currently the more affordable of the two stocks.
Summary
Southern Copper beats International Tower Hill Mines on 10 of the 12 factors compared between the two stocks.
About Southern Copper
(Get Rating)
Southern Copper Corp. engages in the development, production, and exploration of copper, molybdenum, zinc, and silver. It operates through the following segments: Peruvian Operations, Mexican Open-Pit Operations, and Mexican Underground Mining Operations. The Peruvian Operations segment focuses on the Toquepala and Cuajone mine complexes and the smelting and refining plants, industrial railroad, and port facilities that service both mines. The Mexican Open-Pit Operations segment comprises the La Caridad and Buenavista mine complexes, the smelting, and refining plants and support facilities, which service both mines. The Mexican Underground Mining Operations segment is involved in the operation of five underground mines, a coal mine, and several industrial processing facilities. The company was founded on December 12, 1952 and is headquartered in Phoenix, AZ.
About International Tower Hill Mines
(Get Rating)
International Tower Hill Mines Ltd. is a mineral exploration company, which engages in the acquisition and exploration of mineral properties. It holds the right to acquire interest in an advanced stage exploration project in Alaska, known as the Livengood Gold Project. The company was founded by Jeffrey A. Pontius on May 26, 1978 and is headquartered in Vancouver, Canada.
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