Stans Energy (OTCMKTS:HREEF) and Freeport-McMoRan (NYSE:FCX) are both basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, dividends and profitability.

Analyst Ratings

This is a summary of current ratings and recommmendations for Stans Energy and Freeport-McMoRan, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stans Energy 0 0 0 0 N/A
Freeport-McMoRan 1 5 10 0 2.56

Freeport-McMoRan has a consensus price target of $13.68, indicating a potential upside of 20.82%. Given Freeport-McMoRan’s higher possible upside, analysts clearly believe Freeport-McMoRan is more favorable than Stans Energy.

Risk and Volatility

Stans Energy has a beta of 3.46, suggesting that its stock price is 246% more volatile than the S&P 500. Comparatively, Freeport-McMoRan has a beta of 2.51, suggesting that its stock price is 151% more volatile than the S&P 500.

Insider and Institutional Ownership

0.0% of Stans Energy shares are owned by institutional investors. Comparatively, 70.9% of Freeport-McMoRan shares are owned by institutional investors. 1.0% of Freeport-McMoRan shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Stans Energy and Freeport-McMoRan’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Stans Energy N/A N/A -$2.99 million N/A N/A
Freeport-McMoRan $14.40 billion 1.14 -$239.00 million $0.02 566.00

Stans Energy has higher earnings, but lower revenue than Freeport-McMoRan.

Profitability

This table compares Stans Energy and Freeport-McMoRan’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Stans Energy N/A N/A -225.18%
Freeport-McMoRan -1.12% 0.18% 0.08%

Summary

Freeport-McMoRan beats Stans Energy on 7 of the 11 factors compared between the two stocks.

About Stans Energy

Stans Energy Corp. operates as a resource development company with a focus on rare earth and specialty metal properties in Canada, the Kyrgyz Republic, and Russia. It primarily explores for uranium, rare earth elements, gold, and base metals. Stans Energy Corp. was incorporated in 2005 and is headquartered in Toronto, Canada.

About Freeport-McMoRan

Freeport-McMoRan, Inc. engages in the mining of copper, gold, and molybdenum. It operates through the following segments: North America Copper Mines; South America Mining; Indonesia Mining; Molybdenum Mines; Rod and Refining; Atlantic Copper Smelting and Refining; and Corporate, Other, and Eliminations. The North America Copper Mines segment operates open-pit copper mines in Morenci, Bagdad, Safford, Sierrita and Miami in Arizona; and Chino and Tyrone in New Mexico. The South America Mining segment includes Cerro Verde in Peru and El Abra in Chile. The Indonesia Mining segment handles the operations of Grasberg minerals district that produces copper concentrate that contains significant quantities of gold and silver. The Molybdenum Mines segment includes the Henderson underground mine and Climax open-pit mine, both in Colorado. The Rod and Refining segment consists of copper conversion facilities located in North America, and includes a refinery, rod mills, and a specialty copper products facility. The Atlantic Copper Smelting and Refining segment smelts and refines copper concentrate and markets refined copper and precious metals in slimes. The Corporate, Other, and Eliminations segment consists of other mining and eliminations, oil and gas operations, and other corporate and elimination items. The company was founded by James R. Moffett on November 10, 1987 and is headquartered in Phoenix, AZ.

Receive News & Ratings for Stans Energy Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Stans Energy and related companies with MarketBeat.com's FREE daily email newsletter.