Critical Review: Nexa Resources (NYSE:NEXA) & Jaguar Mining (NYSE:JAGGF)

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

Institutional and Insider Ownership

8.4% 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 company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Nexa Resources and Jaguar Mining, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nexa Resources 3 5 0 0 1.63
Jaguar Mining 0 0 0 0 N/A

Nexa Resources currently has a consensus target price of $8.01, suggesting a potential upside of 24.22%. Given Nexa Resources’ higher possible upside, research analysts plainly believe Nexa Resources is more favorable than Jaguar Mining.

Earnings and Valuation

This table compares Nexa Resources and Jaguar Mining’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nexa Resources $2.33 billion 0.37 -$146.63 million $0.36 17.92
Jaguar Mining $97.23 million 2.72 -$150,000.00 N/A N/A

Jaguar Mining has lower revenue, but higher earnings than Nexa Resources.

Profitability

This table compares Nexa Resources and Jaguar Mining’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nexa Resources -29.69% -0.12% -0.05%
Jaguar Mining 13.10% 11.27% 7.17%

Volatility & Risk

Nexa Resources has a beta of 1.27, suggesting that its stock price is 27% more volatile than the S&P 500. Comparatively, Jaguar Mining has a beta of 2.42, suggesting that its stock price is 142% more volatile than the S&P 500.

Summary

Jaguar Mining beats Nexa Resources on 7 of the 10 factors compared between the two stocks.

About Nexa Resources

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.

About Jaguar Mining

Jaguar Mining Inc., a junior gold mining company, engages in the acquisition, exploration, development, and operation of gold producing properties in Brazil. Its principal assets include the Turmalina Gold Mine Complex and Caeté Gold Mine Complex located in the Iron Quadrangle in the state of Minas Gerais. Its mineral claims cover an area of approximately 64,000 hectares. The company was founded in 2002 and is headquartered in Toronto, Canada.

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