Critical Analysis: First Quantum Minerals (FQVLF) & Turquoise Hill Resources (TRQ)
First Quantum Minerals (OTCMKTS:FQVLF) and Turquoise Hill Resources (NYSE:TRQ) are both mid-cap basic materials companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, valuation, risk and earnings.
Insider & Institutional Ownership
0.2% of First Quantum Minerals shares are owned by institutional investors. Comparatively, 38.6% of Turquoise Hill Resources shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
First Quantum Minerals pays an annual dividend of $0.01 per share and has a dividend yield of 0.1%. Turquoise Hill Resources does not pay a dividend.
Volatility & Risk
First Quantum Minerals has a beta of 3.12, meaning that its share price is 212% more volatile than the S&P 500. Comparatively, Turquoise Hill Resources has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500.
Earnings and Valuation
This table compares First Quantum Minerals and Turquoise Hill Resources’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|First Quantum Minerals||$3.97 billion||1.28||$441.00 million||N/A||N/A|
|Turquoise Hill Resources||$1.18 billion||2.03||$411.20 million||N/A||N/A|
First Quantum Minerals has higher revenue and earnings than Turquoise Hill Resources.
This table compares First Quantum Minerals and Turquoise Hill Resources’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|First Quantum Minerals||11.35%||5.54%||2.54%|
|Turquoise Hill Resources||33.93%||5.21%||3.29%|
This is a breakdown of current ratings and target prices for First Quantum Minerals and Turquoise Hill Resources, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|First Quantum Minerals||1||4||4||1||2.50|
|Turquoise Hill Resources||0||1||0||0||2.00|
Turquoise Hill Resources has a consensus target price of $3.30, suggesting a potential upside of 177.31%. Given Turquoise Hill Resources’ higher probable upside, analysts plainly believe Turquoise Hill Resources is more favorable than First Quantum Minerals.
First Quantum Minerals beats Turquoise Hill Resources on 9 of the 14 factors compared between the two stocks.
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.
About Turquoise Hill Resources
Turquoise Hill Resources Ltd., together with its subsidiaries, operates as a mining company. The company explores for copper, gold, and silver deposits. It primarily develops and operates the Oyu Tolgoi mine located in the southern Mongolia. The company was formerly known as Ivanhoe Mines Ltd. and changed its name to Turquoise Hill Resources Ltd. in August 2012. Turquoise Hill Resources Ltd. was founded in 1994 and is headquartered in Vancouver, Canada. Turquoise Hill Resources Ltd. is a subsidiary of Rio Tinto plc.
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