Financial Comparison: Yara International ASA (OTCMKTS:YARIY) vs. Ero Copper (NYSE:ERO)

Yara International ASA (OTCMKTS:YARIY) and Ero Copper (NYSE:ERO) are both basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, dividends, institutional ownership, analyst recommendations and earnings.

Analyst Ratings

This is a summary of recent ratings and price targets for Yara International ASA and Ero Copper, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Yara International ASA	1	0	0	0	1.00
Ero Copper	0	0	7	1	3.13

Ero Copper has a consensus target price of $26.33, suggesting a potential upside of 85.64%. Given Ero Copper’s stronger consensus rating and higher possible upside, analysts clearly believe Ero Copper is more favorable than Yara International ASA.

Volatility and Risk

Yara International ASA has a beta of 0.92, indicating that its stock price is 8% less volatile than the S&P 500. Comparatively, Ero Copper has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500.

Insider & Institutional Ownership

0.0% of Yara International ASA shares are owned by institutional investors. Comparatively, 71.3% of Ero Copper shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Yara International ASA and Ero Copper’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Yara International ASA	3.89%	9.32%	4.36%
Ero Copper	3.67%	11.30%	5.62%

Valuation and Earnings

This table compares Yara International ASA and Ero Copper”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Yara International ASA	$15.55 billion	0.48	$48.00 million	$1.08	13.53
Ero Copper	$427.48 million	3.43	$92.80 million	$0.17	83.44

Ero Copper has lower revenue, but higher earnings than Yara International ASA. Yara International ASA is trading at a lower price-to-earnings ratio than Ero Copper, indicating that it is currently the more affordable of the two stocks.

Summary

Ero Copper beats Yara International ASA on 11 of the 14 factors compared between the two stocks.

About Yara International ASA

Yara International ASA provides crop nutrition and industrial solutions in Norway, European Union, Europe, Africa, Asia, North and Latin America, Australia, and New Zealand. The company offers ammonium- and urea-based fertilizers; compound fertilizers that contain nutrients, such as nitrogen, phosphorus, and potassium; coatings; biostimulants; organic-based fertilizers; green fertilizers are nitrate-based mineral fertilizers, as well as foliar and fertigation solutions; and nitrate, calcium nitrate, micronutrient, and fertigation and urea fertilizers. It also offers digital solutions, such as variable rate application solutions; N-Sensor, a tractor-mounted hardware; N-Tester, a handheld nitrogen measurement tool; YaraFX Insight, an agricultural API; and Atfarm, a digital toolbox for farmer. The company sells its products under YaraBela, YaraMila, YaraLiva, YaraVita, YaraRega, YaraTera, YaraSuna, and YaraVera and brands. Yara International ASA was founded in 1905 and is headquartered in Oslo, Norway.

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.