Critical Contrast: Ternium (NYSE:TX) vs. Fortuna Mining (NYSE:FSM)

Fortuna Mining (NYSE:FSM) and Ternium (NYSE:TX) are both materials companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, risk, profitability, dividends and valuation.

Earnings and Valuation

This table compares Fortuna Mining and Ternium”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fortuna Mining	$1.18 billion	2.80	$287.47 million	$1.18	9.47
Ternium	$15.61 billion	0.73	$425.23 million	$3.56	16.01

Ternium has higher revenue and earnings than Fortuna Mining. Fortuna Mining is trading at a lower price-to-earnings ratio than Ternium, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

33.8% of Fortuna Mining shares are owned by institutional investors. Comparatively, 12.0% of Ternium shares are owned by institutional investors. 1.0% of Fortuna Mining shares are owned by company insiders. Comparatively, 0.0% of Ternium shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Fortuna Mining and Ternium’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fortuna Mining	31.99%	17.48%	12.88%
Ternium	4.37%	4.26%	2.92%

Volatility and Risk

Fortuna Mining has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500. Comparatively, Ternium has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Fortuna Mining and Ternium, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fortuna Mining	0	1	4	0	2.80
Ternium	0	4	6	1	2.73

Fortuna Mining presently has a consensus target price of $14.00, indicating a potential upside of 25.22%. Ternium has a consensus target price of $55.72, indicating a potential downside of 2.22%. Given Fortuna Mining’s stronger consensus rating and higher possible upside, analysts clearly believe Fortuna Mining is more favorable than Ternium.

Summary

Fortuna Mining beats Ternium on 8 of the 15 factors compared between the two stocks.

About Fortuna Mining

Fortuna Mining Corp. engages in the precious and base metal mining in Argentina, Burkina Faso, Mexico, Peru, and Côte d’Ivoire. It operates through Mansfield, Sanu, Sango, Cuzcatlan, Bateas, and Corporate segments. The company primarily explores for silver, lead, zinc, and gold. Its flagship project is the Séguéla gold mine, which consists of approximately 62,000 hectares and is located in the Worodougou Region of the Woroba District, Côte d’Ivoire. The company was formerly known as Fortuna Silver Mines Inc. and changed its name to Fortuna Mining Corp. in June 2024. Fortuna Mining Corp. was incorporated in 1990 and is based in Vancouver, Canada.

About Ternium

Ternium S.A., together with its subsidiaries, manufactures and distributes steel products in Mexico, Southern Region, Brazil, and internationally. It operates through three segments: Steel, Mining, and Usiminas. The Steel segment offers slabs, hot and cold rolled products, coated products, roll formed and tubular products, bars, billets, and other products. Its Mining segment sells iron ore and pellets. The Usiminas segment offers iron ore extraction, steel transformation, and production of capital goods and logistics; and manufactures and sells various products and raw materials, such as flat steel, iron ore, and stamped steel parts for the automotive industry and products for the civil construction and capital goods industry. It also provides medical and social; scrap; renewable energy; and engineering and other services, as well as operates as a distribution company. In addition, the company engages in the exploration, exploitation, and pelletizing of iron ore. Ternium S.A. was founded in 1961 and is based in Luxembourg City, Luxembourg. Ternium S.A. is a subsidiary of Techint Holdings S.à r.l.