Southern Copper (NYSE:SCCO) and Pacific Booker Minerals (OTCMKTS:PBMLF) are both basic materials companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.
This table compares Southern Copper and Pacific Booker Minerals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Pacific Booker Minerals||N/A||-1.20%||-1.20%|
7.2% of Southern Copper shares are held by institutional investors. 0.5% of Southern Copper shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Southern Copper and Pacific Booker Minerals’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Southern Copper||$7.10 billion||3.76||$1.54 billion||$2.00||17.28|
|Pacific Booker Minerals||N/A||N/A||-$310,000.00||N/A||N/A|
Southern Copper has higher revenue and earnings than Pacific Booker Minerals.
Volatility and Risk
Southern Copper has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500. Comparatively, Pacific Booker Minerals has a beta of -0.73, meaning that its stock price is 173% less volatile than the S&P 500.
Southern Copper pays an annual dividend of $1.60 per share and has a dividend yield of 4.6%. Pacific Booker Minerals does not pay a dividend. Southern Copper pays out 80.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Southern Copper has increased its dividend for 2 consecutive years.
This is a summary of current ratings and price targets for Southern Copper and Pacific Booker Minerals, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Pacific Booker Minerals||0||0||0||0||N/A|
Southern Copper presently has a consensus price target of $41.55, indicating a potential upside of 20.23%. Given Southern Copper’s higher possible upside, research analysts clearly believe Southern Copper is more favorable than Pacific Booker Minerals.
Southern Copper beats Pacific Booker Minerals on 12 of the 13 factors compared between the two stocks.
About Southern Copper
Southern Copper Corporation engages in mining, exploring, smelting, and refining copper and other minerals in Peru, Mexico, Argentina, Ecuador, and Chile. 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 in Mexico. 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. The company has interests in 37,622 hectares of exploration concessions in Peru; 147,974 hectares of exploration concessions in Mexico; 63,453 hectares of exploration concessions in Argentina; 42,615 hectares of exploration concessions in Chile; and 7,298 hectares of exploration concessions in Ecuador. Southern Copper Corporation was founded in 1952 and is based in Phoenix, Arizona. Southern Copper Corporation is a subsidiary of Americas Mining Corporation.
About Pacific Booker Minerals
Pacific Booker Minerals Inc. engages in the exploration of mineral properties in Canada. The company primarily explores for copper, gold, silver, and molybdenum concentrates. It primarily holds interest in the Morrison property located in British Columbia. The company was formerly known as Booker Gold Explorations Limited and changed its name to Pacific Booker Minerals Inc. in February 2000. Pacific Booker Minerals Inc. was incorporated in 1983 and is headquartered in Vancouver, Canada.
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