Freeport-McMoRan (NYSE:FCX) & Captor Capital (OTCMKTS:CPTRF) Critical Review

Freeport-McMoRan (NYSE:FCX) and Captor Capital (OTCMKTS:CPTRF) are both basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, risk, profitability and valuation.

Analyst Recommendations

This is a summary of recent ratings and price targets for Freeport-McMoRan and Captor Capital, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Freeport-McMoRan	0	5	7	1	2.69
Captor Capital	0	0	0	0	0.00

Freeport-McMoRan presently has a consensus price target of $53.92, indicating a potential upside of 41.29%. Given Freeport-McMoRan’s stronger consensus rating and higher possible upside, equities analysts plainly believe Freeport-McMoRan is more favorable than Captor Capital.

Valuation and Earnings

This table compares Freeport-McMoRan and Captor Capital”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Freeport-McMoRan	$25.64 billion	2.14	$1.85 billion	$1.37	27.85
Captor Capital	$27.25 million	N/A	-$8.44 million	$4.08	0.04

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Freeport-McMoRan	7.81%	7.40%	3.86%
Captor Capital	-30.97%	75.79%	46.99%

Institutional & Insider Ownership

80.8% of Freeport-McMoRan shares are owned by institutional investors. 0.8% of Freeport-McMoRan shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Freeport-McMoRan beats Captor Capital on 10 of the 13 factors compared between the two stocks.

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.

About Captor Capital

Captor Capital Corp. engages in the manufacture and retail sale of cannabis products in the United States. It operates two dispensaries under the CHAI Cannabis Co. brand in Santa Cruz and Monterey, California, as well as operates an e-commerce site under the CHAI-brand. The company was formerly known as NWT Uranium Corp. and changed its name to Captor Capital Corp. in June 2017. Captor Capital Corp. was incorporated in 2003 and is based in Toronto, Canada.