Head to Head Contrast: TMC the metals (NASDAQ:TMC) and Southern Copper (NYSE:SCCO)

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

Earnings and Valuation

This table compares Southern Copper and TMC the metals’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Southern Copper	$9.90 billion	9.16	$2.43 billion	$3.01	38.56
TMC the metals	N/A	N/A	-$73.78 million	($0.28)	-4.93

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

Insider and Institutional Ownership

7.9% of Southern Copper shares are owned by institutional investors. Comparatively, 4.4% of TMC the metals shares are owned by institutional investors. 0.1% of Southern Copper shares are owned by insiders. Comparatively, 30.0% of TMC the metals shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Southern Copper and TMC the metals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Southern Copper	24.20%	30.44%	13.93%
TMC the metals	N/A	-304.15%	-114.81%

Analyst Ratings

This is a summary of current recommendations and price targets for Southern Copper and TMC the metals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Southern Copper	5	0	2	0	1.57
TMC the metals	0	1	2	0	2.67

Southern Copper presently has a consensus target price of $84.50, suggesting a potential downside of 27.17%. TMC the metals has a consensus target price of $4.10, suggesting a potential upside of 197.10%. Given TMC the metals’ stronger consensus rating and higher probable upside, analysts clearly believe TMC the metals is more favorable than Southern Copper.

Risk & Volatility

Southern Copper has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500. Comparatively, TMC the metals has a beta of 1.69, suggesting that its share price is 69% more volatile than the S&P 500.

Summary

Southern Copper beats TMC the metals on 8 of the 12 factors compared between the two stocks.

About Southern Copper

Southern Copper Corporation engages in mining, exploring, smelting, and refining copper and other minerals in Peru, Mexico, Argentina, Ecuador, and Chile. The company is involved in the mining, milling, and flotation of copper ore to produce copper and molybdenum concentrates; smelting of copper concentrates to produce blister and anode copper; refining of anode copper to produce copper cathodes; production of molybdenum concentrate and sulfuric acid; production of refined silver, gold, and other materials; and mining and processing of zinc, copper, molybdenum, silver, gold, and lead. It operates the Toquepala and Cuajone open-pit mines, and a smelter and refinery in Peru; and La Caridad, an open-pit copper mine, as well as a copper ore concentrator, a SX-EW plant, a smelter, refinery, and a rod plant in Mexico. The company also operates Buenavista, an open-pit copper mine, as well as two copper concentrators and two operating SX-EW plants in Mexico. In addition, it operates underground mines that produce zinc, lead, copper, silver, and gold; a coal mine; and a zinc refinery. The company has interests in 156,818 hectares and 502,688 hectares of concessions in Peru and Mexico; and 168,200 hectares and 28,453 hectares of exploration concessions in Argentina and Chile. Southern Copper Corporation was incorporated in 1952 and is based in Phoenix, Arizona. Southern Copper Corporation operates as a subsidiary of Americas Mining Corporation.

About TMC the metals

TMC the metals company Inc., a deep-sea minerals exploration company, focuses on the collection, processing, and refining of polymetallic nodules found on the seafloor in California. It primarily explores for nickel, cobalt, copper, and manganese products. The company holds exploration and commercial rights in three polymetallic nodule contract areas in the Clarion Clipperton Zone of the Pacific Ocean. Its products are used in electric vehicles (EV), renewable energy storage markets, EV wiring, energy transmission, manganese alloy production required for steel production, and other applications. The company was formerly known as Sustainable Opportunities Acquisition Corporation and changed its name to TMC the metals company Inc. TMC the metals company Inc. was founded in 2011 and is based in Vancouver, Canada.