Critical Contrast: Minco Capital (OTCMKTS:MGHCF) & First Quantum Minerals (OTCMKTS:FQVLF)

Minco Capital (OTCMKTS:MGHCF) and First Quantum Minerals (OTCMKTS:FQVLF) are both basic materials companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, institutional ownership, profitability and earnings.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Minco Capital and First Quantum Minerals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Minco Capital 0 0 0 0 N/A
First Quantum Minerals 1 3 6 0 2.50

First Quantum Minerals has a consensus target price of $14.67, suggesting a potential upside of 60.13%. Given First Quantum Minerals’ higher possible upside, analysts plainly believe First Quantum Minerals is more favorable than Minco Capital.

Earnings and Valuation

This table compares Minco Capital and First Quantum Minerals’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Minco Capital N/A N/A -$4.94 million N/A N/A
First Quantum Minerals $3.97 billion 1.59 $441.00 million N/A N/A

First Quantum Minerals has higher revenue and earnings than Minco Capital.

Dividends

First Quantum Minerals pays an annual dividend of $0.01 per share and has a dividend yield of 0.1%. Minco Capital does not pay a dividend.

Risk & Volatility

Minco Capital has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500. Comparatively, First Quantum Minerals has a beta of 3.58, indicating that its stock price is 258% more volatile than the S&P 500.

Profitability

This table compares Minco Capital and First Quantum Minerals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Minco Capital N/A -12.60% -12.42%
First Quantum Minerals 6.67% 3.69% 1.68%

Institutional and Insider Ownership

0.0% of Minco Capital shares are owned by institutional investors. Comparatively, 0.2% of First Quantum Minerals shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

First Quantum Minerals beats Minco Capital on 10 of the 10 factors compared between the two stocks.

About Minco Capital

Minco Capital Corp. operates as an investment issuer. It invests in privately and publicly traded companies. The company was formerly known as Minco Gold Corporation and changed its name to Minco Capital Corp. in February 2019. Minco Capital Corp. was founded in 1982 and is headquartered in Vancouver, Canada.

About First Quantum Minerals

First Quantum Minerals Ltd. engages in the exploration, development, and production of mineral properties. It primarily explores for copper, nickel, gold, and zinc ores, as well as produces acid. The company operates seven mines, including the Ravensthorpe nickel mine in Australia; the Kansanshi copper-gold mine and copper smelter in Zambia; the Sentinel copper operation in North Western Province of Zambia; the Guelb Moghrein copper-gold mine in Mauritania; the Çayeli copper-zinc mine in Turkey; the Las Cruces copper mine in Spain; and the Pyhäsalmi copper-zinc mine in Finland. It also has interests in copper and nickel projects at various stages of development located in Panama, Argentina, Peru, and Zambia. The company was formerly known as First Quantum Ventures Ltd. and changed its name to First Quantum Minerals Ltd. in July 1996. First Quantum Minerals Ltd. was founded in 1983 and is based in Vancouver, Canada.

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