Comparing Nexa Resources (NYSE:NEXA) and Vox Royalty (NASDAQ:VOXR)

Vox Royalty (NASDAQ:VOXR) and Nexa Resources (NYSE:NEXA) are both small-cap materials companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, earnings and institutional ownership.

Institutional and Insider Ownership

46.0% of Vox Royalty shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for Vox Royalty and Nexa Resources, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vox Royalty	0	1	3	0	2.75
Nexa Resources	1	6	0	0	1.86

Vox Royalty presently has a consensus price target of $8.00, indicating a potential upside of 56.56%. Nexa Resources has a consensus price target of $14.60, indicating a potential upside of 19.61%. Given Vox Royalty’s stronger consensus rating and higher possible upside, research analysts clearly believe Vox Royalty is more favorable than Nexa Resources.

Valuation and Earnings

This table compares Vox Royalty and Nexa Resources”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vox Royalty	$16.62 million	21.35	$5.89 million	$0.67	7.63
Nexa Resources	$3.00 billion	0.54	$132.63 million	$2.09	5.84

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

Profitability

This table compares Vox Royalty and Nexa Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vox Royalty	144.32%	13.41%	12.00%
Nexa Resources	8.02%	20.25%	5.28%

Volatility and Risk

Vox Royalty has a beta of 0.57, meaning that its share price is 43% less volatile than the S&P 500. Comparatively, Nexa Resources has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500.

Summary

Vox Royalty beats Nexa Resources on 8 of the 13 factors compared between the two stocks.

About Vox Royalty

Vox Royalty Corp. operates as a mining royalty and streaming company. The company holds a portfolio of 60 royalties and streaming assets. It operates in Australia, Canada, Peru, Brazil, South Africa, Mexico, and the United States. Vox Royalty Corp. was founded in 2014 and is based in Toronto, Canada.

About Nexa Resources

Nexa Resources S.A., together with its subsidiaries, engages in the zinc mining and smelting business worldwide. The company operates in two segments, Mining and Smelting. It produces zinc, zamac, zinc oxide, and zincal, as well as by-products, such as copper, lead, silver, gold, copper sulfate, sulfuric acid, copper cementum, silver concentrate, slag aggregates, and cadmium/sponge deposits. The company owns and operates six polymetallic mines, including three located in the Central Andes of Peru; two located in the State of Minas Gerais in Brazil; and one located in the State of Mato Grosso in Brazil. It also owns and operates three zinc smelters comprising one located in Cajamarquilla in Peru; and two located in the State of Minas Gerais in Brazil, which recovers and produces metallic zinc, zinc oxide, and by-products, such as sulfuric acid. The company also exports its products. Its products are used in civil construction, transportation, energy, agriculture, health, and consumer goods industries. 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, Luxembourg. Nexa Resources S.A. operates as a subsidiary of Votorantim S.A.