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

Dividends

Freeport-McMoRan pays an annual dividend of $0.20 per share and has a dividend yield of 1.5%. Pacific Booker Minerals does not pay a dividend. Freeport-McMoRan pays out 13.2% of its earnings in the form of a dividend.

Profitability

This table compares Freeport-McMoRan and Pacific Booker Minerals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Freeport-McMoRan 12.12% 15.77% 5.76%
Pacific Booker Minerals N/A -1.20% -1.20%

Insider & Institutional Ownership

70.8% of Freeport-McMoRan shares are held by institutional investors. 1.1% of Freeport-McMoRan shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Freeport-McMoRan and Pacific Booker Minerals’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Freeport-McMoRan $18.63 billion 1.05 $2.60 billion $1.52 8.86
Pacific Booker Minerals N/A N/A -$310,000.00 N/A N/A

Freeport-McMoRan has higher revenue and earnings than Pacific Booker Minerals.

Volatility and Risk

Freeport-McMoRan has a beta of 2.26, suggesting that its share price is 126% more volatile than the S&P 500. Comparatively, Pacific Booker Minerals has a beta of -0.76, suggesting that its share price is 176% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Freeport-McMoRan and Pacific Booker Minerals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Freeport-McMoRan 3 9 6 0 2.17
Pacific Booker Minerals 0 0 0 0 N/A

Freeport-McMoRan presently has a consensus price target of $15.60, suggesting a potential upside of 15.90%. Given Freeport-McMoRan’s higher possible upside, analysts clearly believe Freeport-McMoRan is more favorable than Pacific Booker Minerals.

Summary

Freeport-McMoRan beats Pacific Booker Minerals on 11 of the 12 factors compared between the two stocks.

About Freeport-McMoRan

Freeport-McMoRan Inc. engages in the mining of mineral properties in North America, South America, and Indonesia. The company primarily explores for copper, gold, molybdenum, silver, and other metals, as well as oil and gas. Its assets include the Grasberg minerals district in Indonesia; Morenci, Bagdad, Safford, Sierrita, and Miami in Arizona; Tyrone and Chino in New Mexico; and Henderson and Climax in Colorado, North America, as well as Cerro Verde in Peru and El Abra in Chile. It also operates a portfolio of oil and gas assets comprising oil and natural gas production onshore in South Louisiana; and oil production offshore California. As of December 31, 2018, the company's estimated consolidated recoverable proven and probable mineral reserves totaled 119.6 billion pounds of copper, 30.8 million ounces of gold, and 3.78 billion pounds of molybdenum, as well as estimated proved developed oil and natural gas reserves totaled 7.2 million barrels of oil equivalents. The company was formerly known as Freeport-McMoRan Copper & Gold Inc. and changed its name to Freeport-McMoRan Inc. in July 2014. Freeport-McMoRan Inc. was founded in 1987 and is headquartered in Phoenix, Arizona.

About Pacific Booker Minerals

Pacific Booker Minerals, Inc. is a natural resource company, which engages in the business of mineral exploration. It property includes Morrison Copper or Gold Project. The company was founded on February 18, 1983 and is headquartered in Vancouver, Canada.

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