Critical Survey: Vale (VALE) vs. Quaterra Resources (QTRRF)

Vale (NYSE:VALE) and Quaterra Resources (OTCMKTS:QTRRF) are both basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.

Risk and Volatility

Vale has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500. Comparatively, Quaterra Resources has a beta of 2.6, suggesting that its stock price is 160% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for Vale and Quaterra Resources, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vale 3 10 3 0 2.00
Quaterra Resources 0 0 0 0 N/A

Vale presently has a consensus target price of $13.73, indicating a potential upside of 22.40%. Given Vale’s higher possible upside, analysts clearly believe Vale is more favorable than Quaterra Resources.

Valuation and Earnings

This table compares Vale and Quaterra Resources’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Vale $33.97 billion 1.72 $5.51 billion $1.35 8.31
Quaterra Resources N/A N/A -$1.24 million N/A N/A

Vale has higher revenue and earnings than Quaterra Resources.

Institutional and Insider Ownership

19.9% of Vale shares are held by institutional investors. Comparatively, 0.3% of Quaterra Resources shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Vale and Quaterra Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Vale 10.70% 17.87% 8.52%
Quaterra Resources N/A -3.48% -3.33%

Dividends

Vale pays an annual dividend of $0.08 per share and has a dividend yield of 0.7%. Quaterra Resources does not pay a dividend. Vale pays out 5.9% of its earnings in the form of a dividend.

Summary

Vale beats Quaterra Resources on 9 of the 11 factors compared between the two stocks.

Vale Company Profile

Vale S.A., together with its subsidiaries, produces and sells iron ore and iron ore pellets for use as raw materials in steelmaking in Brazil and internationally. It operates through Ferrous Minerals, Coal, and Base Metals segments. The Ferrous Minerals segment produces and extracts iron ore and pellets, manganese, ferroalloys, and others ferrous products and services, as well as engages in the provision of related railroad, port, and terminal logistics services. The Coal segment is involved in the extraction of metallurgical and thermal coal; and provision of related logistic services. The Base Metals segment produces and extracts non-ferrous minerals, including nickel; and its by-products, such as ferro-nickel, cobalt, gold, silver, copper, precious metals, and others. The company was formerly known as Companhia Vale do Rio Doce and changed its name to Vale S.A. in May 2009. Vale S.A. was founded in 1942 and is headquartered in Rio de Janeiro, Brazil.

Quaterra Resources Company Profile

Quaterra Resources Inc. operates as a copper exploration and development company primarily in North America. It holds 100% interests in the MacArthur, Yerington, Bear, and Wassuk copper properties located in the Yerington District, Nevada, as well as an option to acquire a 90% interest in the Groundhog copper prospect covering 40,000 acres located to the southwest of Anchorage, Alaska. The company was formerly known as Aquaterre Mineral Development Ltd. and changed its name to Quaterra Resources Inc. in October 1997. Quaterra Resources Inc. was incorporated in 1993 and is headquartered in Vancouver, Canada.

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

Leave a Reply