Base Metals

Nexa Resources (NYSE:NEXA) and Trevali Mining (OTCMKTS:TREVF) Financial Contrast

Nexa Resources (NYSE:NEXA) and Trevali Mining (OTCMKTS:TREVF) are both small-cap basic materials companies, but which is the better investment? We will…

Published

4 months ago

January 23, 2022

This article was originally published by ETF Daily News

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Nexa Resources	6.44%	10.57%	3.50%
Trevali Mining	-14.10%	6.16%	2.46%

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nexa Resources	$1.95 billion	0.56	-$559.25 million	$1.23	6.74
Trevali Mining	$212.88 million	0.69	-$239.33 million	($0.50)	-2.97

Trevali Mining has lower revenue, but higher earnings than Nexa Resources. Trevali Mining is trading at a lower price-to-earnings ratio than Nexa Resources, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

7.4% of Nexa Resources shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nexa Resources	0	4	0	0	2.00
Trevali Mining	1	4	0	0	1.80

Nexa Resources presently has a consensus target price of $10.53, suggesting a potential upside of 26.96%. Trevali Mining has a consensus target price of $2.55, suggesting a potential upside of 71.72%. Given Trevali Mining’s higher probable upside, analysts plainly believe Trevali Mining is more favorable than Nexa Resources.

Summary

Nexa Resources beats Trevali Mining on 8 of the 11 factors compared between the two stocks.

About Nexa Resources

Nexa Resources SA engages in the production of zinc in Latin America. It operates through the following segments: Mining and Smelting. The Mining segment comprises of mines located in Peru and Brazil, which includes mineral exploration activities and the production of zinc, copper, and lead concentrates. The Smelting segment consists of facilities that recover and produce metallic zinc, zinc oxide, and by-products. The company was founded on February 26, 2014 and is headquartered in Sao Paulo, Brazil.

About Trevali Mining

Trevali Mining logo Trevali Mining Corp. engages in the acquisition, exploration, development and production of mineral properties. It focuses on the production of zinc and lead-silver concentrates from its Santander Mine in Peru, its Caribou Mine in the Bathurst Mining Camp, northern New Brunswick, Canada, its Rosh Pinah Mine in Namibia and producing zinc concentrates from its Perkoa Mine in Burkina Faso. The company was founded by Mark D. Cruise on December 31, 1993 and is headquartered in Vancouver, Canada.