Santacruz Silver Mining (NASDAQ:SCZM) & Ero Copper (NYSE:ERO) Critical Analysis
by Kim Johansen · The Markets DailySantacruz Silver Mining (NASDAQ:SCZM – Get Free Report) and Ero Copper (NYSE:ERO – Get Free Report) are both materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, risk, valuation, dividends, earnings, profitability and institutional ownership.
Insider and Institutional Ownership
71.3% of Ero Copper shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Santacruz Silver Mining and Ero Copper”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Santacruz Silver Mining | $326.38 million | 2.82 | $42.22 million | $0.32 | 31.06 |
| Ero Copper | $785.80 million | 4.62 | $263.72 million | $2.98 | 11.68 |
Ero Copper has higher revenue and earnings than Santacruz Silver Mining. Ero Copper is trading at a lower price-to-earnings ratio than Santacruz Silver Mining, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Santacruz Silver Mining and Ero Copper, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Santacruz Silver Mining | 0 | 2 | 1 | 0 | 2.33 |
| Ero Copper | 1 | 10 | 5 | 2 | 2.44 |
Santacruz Silver Mining presently has a consensus price target of $10.00, suggesting a potential upside of 0.60%. Ero Copper has a consensus price target of $32.33, suggesting a potential downside of 7.14%. Given Santacruz Silver Mining’s higher possible upside, equities analysts clearly believe Santacruz Silver Mining is more favorable than Ero Copper.
Profitability
This table compares Santacruz Silver Mining and Ero Copper’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Santacruz Silver Mining | 9.97% | 21.55% | 9.49% |
| Ero Copper | 29.79% | 30.32% | 15.17% |
Summary
Ero Copper beats Santacruz Silver Mining on 11 of the 13 factors compared between the two stocks.
About Santacruz Silver Mining
Santacruz Silver Mining Ltd., together with its subsidiaries, engages in the acquisition, exploration, development, and operation of mineral properties in Mexico. The company primarily explores for silver, as well as for gold, zinc, lead, and copper deposits. It primarily holds a 100% interest in the Rosario project located in the municipality of Charcas in the state of San Luis Potosi; and Veta Grande project that include three concession groups, which consists of 184 mining concessions covering an area of 8,944 hectares in the Zacatecas Mining District, Mexico. The company was formerly known as Forte Resources Inc. and changed its name to Santacruz Silver Mining Ltd. in April 2012. Santacruz Silver Mining Ltd. Was incorporated in 2011 and is based in Vancouver, Canada.
About Ero Copper
Ero Copper Corp. engages in the exploration, development, and production of mining projects in Brazil. The company is involved in the production and sale of copper concentrate from the Caraíba operations located in the Curaçá Valley, northeastern Bahia state, Brazil, as well as gold and silver by-products. It also holds 100% interests in the Tucumã project, a copper development project located within southeastern Pará state; and the Xavantina Operations located in Mato Grosso state. Ero Copper Corp. was incorporated in 2016 and is headquartered in Vancouver, Canada.