Critical Contrast: Freeport-McMoRan (NYSE:FCX) vs. Osisko Development (NYSE:OGG)

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

Valuation and Earnings

This table compares Osisko Development and Freeport-McMoRan”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Osisko Development	$25.39 million	37.10	-$120.96 million	($0.12)	-25.67
Freeport-McMoRan	$25.91 billion	4.38	$2.20 billion	$2.03	38.94

Freeport-McMoRan has higher revenue and earnings than Osisko Development. Osisko Development is trading at a lower price-to-earnings ratio than Freeport-McMoRan, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

15.2% of Osisko Development shares are held by institutional investors. Comparatively, 80.8% of Freeport-McMoRan shares are held by institutional investors. 0.9% of Osisko Development shares are held by insiders. Comparatively, 0.7% of Freeport-McMoRan shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Osisko Development	148.74%	11.53%	6.55%
Freeport-McMoRan	11.39%	10.63%	5.69%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Osisko Development and Freeport-McMoRan, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Osisko Development	1	0	1	1	2.67
Freeport-McMoRan	0	3	19	1	2.91

Freeport-McMoRan has a consensus price target of $70.27, suggesting a potential downside of 11.11%. Given Freeport-McMoRan’s stronger consensus rating and higher possible upside, analysts plainly believe Freeport-McMoRan is more favorable than Osisko Development.

Risk & Volatility

Osisko Development has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500. Comparatively, Freeport-McMoRan has a beta of 1.37, meaning that its share price is 37% more volatile than the S&P 500.

Summary

Freeport-McMoRan beats Osisko Development on 9 of the 14 factors compared between the two stocks.

About Osisko Development

Osisko Development Corp. acquires, explores, and develops mineral properties in Canada, Mexico, and the United States. It explores for gold; and precious and base metals. The company's flagship asset is the Cariboo Gold Project covering an area of approximately 155,000 hectares consisting of 415 mineral titles located in British Columbia, Canada. It also holds a portfolio of marketable securities. Osisko Development Corp. is based in Montréal, Canada.

About Freeport-McMoRan

Freeport-McMoRan Inc. engages in the mining of mineral properties in North America, South America, and Indonesia. It primarily explores for copper, gold, molybdenum, silver, and other metals. The company's assets include the Grasberg minerals district in Indonesia; Morenci, Bagdad, Safford, Sierrita, and Miami in Arizona; Chino and Tyrone in New Mexico; and Henderson and Climax in Colorado, North America, as well as Cerro Verde in Peru and El Abra in Chile. 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 incorporated in 1987 and is headquartered in Phoenix, Arizona.