Quest Rare Minerals (QRMLF) and Southern Copper (SCCO) Critical Survey

Quest Rare Minerals (OTCMKTS:QRMLF) and Southern Copper (NYSE:SCCO) are both basic materials companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, institutional ownership and profitability.

Profitability

This table compares Quest Rare Minerals and Southern Copper’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Quest Rare Minerals N/A N/A N/A
Southern Copper 21.74% 23.57% 10.86%



Valuation & Earnings

This table compares Quest Rare Minerals and Southern Copper’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Quest Rare Minerals N/A N/A -$1.89 million N/A N/A
Southern Copper $7.10 billion 4.09 $1.54 billion N/A N/A

Southern Copper has higher revenue and earnings than Quest Rare Minerals.

Risk and Volatility

Quest Rare Minerals has a beta of 4.53, suggesting that its stock price is 353% more volatile than the S&P 500. Comparatively, Southern Copper has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Quest Rare Minerals and Southern Copper, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Quest Rare Minerals 0 0 0 0 N/A
Southern Copper 3 4 5 0 2.17

Southern Copper has a consensus target price of $41.55, indicating a potential upside of 10.53%. Given Southern Copper’s higher probable upside, analysts clearly believe Southern Copper is more favorable than Quest Rare Minerals.

Dividends

Southern Copper pays an annual dividend of $1.60 per share and has a dividend yield of 4.3%. Quest Rare Minerals does not pay a dividend. Southern Copper has increased its dividend for 2 consecutive years.

Institutional & Insider Ownership

7.1% of Southern Copper shares are held by institutional investors. 0.5% of Southern Copper shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Southern Copper beats Quest Rare Minerals on 11 of the 12 factors compared between the two stocks.

Quest Rare Minerals Company Profile

Quest Rare Minerals Ltd. focuses on the exploration, evaluation, and development of rare earth element deposits in Canada. It primarily develops Strange Lake rare earth deposits comprising 534 individual mineral claims covering a total area of approximately 23,230 hectares located in northeastern Québec. The company was formerly known as Quest Uranium Corporation and changed its name to Quest Rare Minerals Ltd. in April 2010. Quest Rare Minerals Ltd. was incorporated in 2007 and is headquartered in Montreal, Canada.

Southern Copper Company Profile

Southern Copper Corporation engages in mining, exploring, smelting, and refining copper and other minerals in Peru, Mexico, Argentina, Chile, and Ecuador. The company is involved in the mining, milling, and flotation of copper ore to produce copper and molybdenum concentrates; smelting of copper concentrates to produce blister and anode copper; refining of anode copper to produce copper cathodes; production of molybdenum concentrate and sulfuric acid; production of refined silver, gold, and other materials; and mining and processing of zinc and lead. It operates the Toquepala and Cuajone open-pit mines, and a smelter and refinery in Peru; and La Caridad, an open-pit copper mine, as well as a copper ore concentrator, a SX-EW plant, a smelter, refinery, and a rod plant. The company also operates Buenavista, an open-pit copper mine, as well as two copper concentrators and three SX-EW plants in Mexico. In addition, it operates five underground mines that produce zinc, lead, copper, silver, and gold; a coal mine that produces coal and coke; and a zinc refinery. It has interests in 44,182 hectares of exploration concessions in Peru; 148,122 hectares of exploration concessions in Mexico; 64,899 hectares of exploration concessions in Argentina; 36,387 hectares of exploration concessions in Chile; and 7,298 hectares of exploration concessions in Ecuador. The company was founded in 1952 and is based in Phoenix, Arizona. Southern Copper Corporation is a subsidiary of Americas Mining Corporation.

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