Analyzing Lomiko Metals (OTCMKTS:LMRMF) & Nexa Resources (OTCMKTS:NEXA)

Lomiko Metals (OTCMKTS:LMRMF) and Nexa Resources (NYSE:NEXA) are both small-cap basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.

Insider & Institutional Ownership

7.6% of Nexa Resources shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Lomiko Metals and Nexa Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lomiko Metals N/A N/A N/A
Nexa Resources -3.90% 0.49% 0.24%

Risk and Volatility

Lomiko Metals has a beta of 2.01, indicating that its stock price is 101% more volatile than the S&P 500. Comparatively, Nexa Resources has a beta of 0.46, indicating that its stock price is 54% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Lomiko Metals and Nexa Resources, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lomiko Metals 0 0 0 0 N/A
Nexa Resources 0 6 2 0 2.25

Nexa Resources has a consensus target price of $12.11, suggesting a potential upside of 40.21%. Given Nexa Resources’ higher probable upside, analysts plainly believe Nexa Resources is more favorable than Lomiko Metals.

Dividends

Nexa Resources pays an annual dividend of $0.53 per share and has a dividend yield of 6.1%. Lomiko Metals does not pay a dividend. Nexa Resources pays out 189.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Valuation and Earnings

This table compares Lomiko Metals and Nexa Resources’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Lomiko Metals N/A N/A -$4.34 million N/A N/A
Nexa Resources $2.49 billion 0.46 $74.86 million $0.28 30.86

Nexa Resources has higher revenue and earnings than Lomiko Metals.

Summary

Nexa Resources beats Lomiko Metals on 8 of the 11 factors compared between the two stocks.

Lomiko Metals Company Profile

Lomiko Metals Inc., an exploration stage company, engages in the acquisition, exploration, and development of resource properties in Canada. The company primarily explores for graphite deposits. The company holds 100% interests in the Vines Lake zinc-silver-gold property, which consists of three claims covering an area of approximately 1,209.84 hectares located in Liard Mining District of British Columbia; the Quatre-Milles graphite property located north of Sainte-Veronique, Quebec; and the Quatre-Milles West located in southern Quebec. It also holds a 40% interest in the La Loutre graphite property covering an area of approximately 2,508.97 hectares located in southern Québec; and 80% interest in the Lac-des-Iles property covering an area of approximately 5,601.30 hectares situated in Québec. The company was formerly known as Lomiko Resources Inc. and changed its name to Lomiko Metals Inc. in October 2008. Lomiko Metals Inc. was incorporated in 1987 and is headquartered in Surrey, Canada.

Nexa Resources Company Profile

Nexa Resources S.A., through its subsidiaries, engages in the zinc mining and smelting business. It also produces copper, lead, silver, and gold deposits. The company owns and operates five mines, including three located in the Central Andes of Peru; and two located in the state of Minas Gerais in Brazil. In addition, it refines byproducts, such as sulfuric acid, as well as exports its products. The company was formerly known as VM Holding S.A. and changed its name to Nexa Resources S.A. in September 2017. The company was founded in 1956 and is based in Luxembourg City, Luxembourg. Nexa Resources S.A. is a subsidiary of Votorantim S.A.

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