Comparing Constellium (NYSE:CSTM) & Southern Copper (NYSE:SCCO)

Southern Copper (NYSE:SCCO) and Constellium (NYSE:CSTM) are both materials companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, analyst recommendations, dividends and valuation.

Earnings & Valuation

This table compares Southern Copper and Constellium”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Southern Copper	$17.11 billion	8.34	$4.33 billion	$7.64	22.11
Constellium	$8.45 billion	0.36	$273.00 million	$4.10	5.59

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

Volatility & Risk

Southern Copper has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500. Comparatively, Constellium has a beta of 1.63, meaning that its stock price is 63% more volatile than the S&P 500.

Institutional and Insider Ownership

7.9% of Southern Copper shares are held by institutional investors. Comparatively, 92.6% of Constellium shares are held by institutional investors. 0.1% of Southern Copper shares are held by company insiders. Comparatively, 1.2% of Constellium shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Southern Copper and Constellium, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Southern Copper	6	4	3	0	1.77
Constellium	0	3	5	0	2.62

Southern Copper currently has a consensus price target of $159.47, suggesting a potential downside of 5.60%. Constellium has a consensus price target of $33.29, suggesting a potential upside of 45.35%. Given Constellium’s stronger consensus rating and higher possible upside, analysts plainly believe Constellium is more favorable than Southern Copper.

Profitability

This table compares Southern Copper and Constellium’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Southern Copper	37.16%	51.61%	27.33%
Constellium	5.73%	49.04%	9.96%

Summary

Southern Copper beats Constellium on 8 of the 14 factors compared between the two stocks.

About Southern Copper

Southern Copper Corporation is an integrated mining company focused primarily on the exploration, mining, processing, and refining of copper. Its operations also produce molybdenum, zinc, lead, silver, and other mineral products. The company operates mines and processing facilities in Peru and Mexico, including the Toquepala and Cuajone operations in Peru and the Buenavista and La Caridad operations in Mexico. Its activities extend across the mining and metals value chain, from extracting ore to producing refined metals and concentrates.

About Constellium

Constellium SE is a global manufacturer of aluminum products and solutions, serving customers in the aerospace, automotive, packaging, defense and industrial markets. Its offerings include rolled and extruded aluminum products, automotive structures and other engineered components. The company operates through businesses focused on aerospace and transportation, packaging and automotive rolled products, and automotive structures and industry. Its products are used in applications such as aircraft, vehicles, beverage packaging and industrial equipment.