Financial Contrast: Coppernico Metals (OTCMKTS:CPPMF) versus Taseko Mines (NYSE:TGB)

On November 1st, 2024, a financial comparison was made between two small-cap basic materials companies: Coppernico Metals (OTCMKTS:CPPMF) and Taseko Mines (NYSE:TGB). This analysis aims to identify which company represents a better investment opportunity by evaluating their risk factors, profitability, institutional ownership, earnings, valuation, dividends, and analyst recommendations.

Analyst Recommendations

Recent ratings and price targets for both companies reveal the analysts' perspectives. For Coppernico Metals, there are no sell, hold, buy, or strong buy ratings available, leading to an N/A rating score. In contrast, Taseko Mines has attracted more attention, with two buy ratings and one strong buy rating. Its consensus price target stands at $3.50, indicating a potential upside of 58.01%. Analysts thus appear to favor Taseko Mines over Coppernico Metals based on projected growth.

Profitability

Analyzing the profitability metrics of both companies indicates substantial differences. Coppernico Metals reports a net margin of 7.31%, whereas Taseko Mines exceeds this significantly at 13.07%. When it comes to return on equity, Coppernico Metals has a negative return of -8.02%, while Taseko Mines boasts a positive return of 18.82%. Additionally, Taseko Mines has a return on assets of 4.78%, compared to Coppernico Metals' -3.71%. These figures indicate that Taseko Mines performs better in terms of profitability.

Insider and Institutional Ownership

Institutional investors hold 17.9% of Taseko Mines' shares, while insiders own 2.3%. The significant institutional ownership suggests confidence in Taseko Mines' ability to outperform the market over time. In comparison, data on Coppernico Metals' ownership structure is less favorable, indicating weaker investor confidence.

Earnings & Valuation

A review of the companies’ financials showcases Taseko Mines as the stronger player. Taseko Mines’ gross revenue reaches $582.21 million, compared to Coppernico Metals' $231.89 million. Alongside this, Taseko Mines has a net income of $61.28 million and an earnings per share of $0.19, while Coppernico Metals reports a net income of $24.58 million and an earnings per share of $0.09. Furthermore, Taseko’s price-to-earnings ratio is significantly higher at 11.66 against Coppernico Metals’ 3.38, suggesting a premium valuation for Taseko Mines while still showing financial strength.

Risk and Volatility

In the context of market volatility, Coppernico Metals has a beta of 2.01, indicating it is 101% more volatile than the S&P 500 index. On the other hand, Taseko Mines has a lower beta of 1.74, signifying it is 74% more volatile than the S&P 500. This data implies that while both stocks carry risk, Coppernico Metals demonstrates higher volatility.

Summary

In conclusion, Taseko Mines surpasses Coppernico Metals in 13 out of the 14 comparison factors evaluated. This positions Taseko Mines as the more favorable investment option based on the data analyzed.

About Coppernico Metals

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Coppernico Metals pertains to the Copper Mountain Mining Corporation, which focuses on developing mineral properties in Canada, particularly for copper, gold, and silver. The company operates primarily through its 75% interest in the Copper Mountain mine, located south of Princeton, British Columbia, spanning an area of 6,354 hectares. Founded in 2006, its headquarters are in Vancouver, Canada. As of June 20, 2023, it functions as a subsidiary of Hudbay Minerals Inc.

About Taseko Mines

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Taseko Mines Limited is engaged in acquiring, developing, and operating mineral properties. It explores deposits of copper, molybdenum, gold, niobium, and silver. Its major asset is the Gibraltar mine, located in British Columbia, with further interests in various projects within the region. Taseko Mines Limited was established in 1966 and is also headquartered in Vancouver, Canada.

Finance, Investment, Mining