Ero Copper Corp. (ERO) vs Freeport-McMoRan Inc. (FCX)

Ero Copper Corp. and Freeport-McMoRan Inc. are both Copper companies. Freeport-McMoRan Inc. is the larger, with a market value of $104.1B against $3.7B — 28.1× the size. Ero Copper Corp. trades at the lower P/E: 13.5× against 35.6×. Ero Copper Corp. grew revenue faster over the last twelve months: 88.7% against 0.19%. Ero Copper Corp. has the higher net margin (31.6% vs 11.4%) and the higher return on invested capital (12.5% vs 11.6%). Across the 22 metrics below, Ero Copper Corp. leads on 16 and Freeport-McMoRan Inc. on 6.

Valuation

Metric ERO FCX Copper median
P/E 13.48 35.62 —
P/S 4.27 4.02 4.32
P/B 3.59 3.23 3.23
Price to free cash flow 28.46 62.41 —
EV/EBITDA 10.15 12.02 12.02
EV/Sales 4.81 4.21 4.81
Earnings yield 7.42% 2.81% 3.35%
Free cash flow yield 3.51% 1.60% 2.65%

Profitability

Metric ERO FCX Copper median
Gross margin 42.75% 27.06% 42.75%
Operating margin 34.62% 26.76% 44.67%
Net margin 31.63% 11.38% 27.48%
Free cash flow margin 15.02% 6.81% 11.46%
Return on equity 32.12% 9.47% 16.70%
Return on assets 15.63% 5.07% 9.91%
Return on invested capital 12.50% 11.62% 12.50%

Growth

Metric ERO FCX Copper median
Revenue growth (TTM) 88.73% 0.19% 12.09%
EPS growth (last fiscal year) 483.33% 16.92% —
Revenue growth, 5-year CAGR 19.38% 12.79% 12.79%
Net income growth, 5-year CAGR 38.57% 29.76% 22.52%

Health

Metric ERO FCX Copper median
Debt to equity 0.53 0.29 0.29
Current ratio 1.30 2.07 2.24
Net debt to EBITDA 1.37 0.61 0.61

Dividend

Metric ERO FCX Copper median
Dividend yield — 1.48% —
Payout ratio 0.00 0.41 —

Size

Metric ERO FCX Copper median
Market cap 3.71b 104.08b 11.64b

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