Reviewing Vedanta Resources (OTCMKTS:VDNRF) & Turquoise Hill Resources (TRQ)

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Turquoise Hill Resources (NYSE:TRQ) and Vedanta Resources (OTCMKTS:VDNRF) are both mid-cap basic materials companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, earnings, profitability, institutional ownership, risk, valuation and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Turquoise Hill Resources and Vedanta Resources, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Turquoise Hill Resources 0 0 1 0 3.00
Vedanta Resources 0 1 0 0 2.00

Turquoise Hill Resources presently has a consensus target price of $5.50, indicating a potential upside of 180.61%. Given Turquoise Hill Resources’ stronger consensus rating and higher probable upside, research analysts clearly believe Turquoise Hill Resources is more favorable than Vedanta Resources.

Profitability

This table compares Turquoise Hill Resources and Vedanta Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Turquoise Hill Resources 34.39% 4.61% 2.89%
Vedanta Resources N/A N/A N/A

Insider & Institutional Ownership

34.9% of Turquoise Hill Resources shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Turquoise Hill Resources and Vedanta Resources’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Turquoise Hill Resources $939.78 million 4.20 $181.24 million N/A N/A
Vedanta Resources $11.52 billion 0.25 -$22.70 million N/A N/A

Turquoise Hill Resources has higher earnings, but lower revenue than Vedanta Resources.

Risk & Volatility

Turquoise Hill Resources has a beta of 0.61, meaning that its stock price is 39% less volatile than the S&P 500. Comparatively, Vedanta Resources has a beta of 2.66, meaning that its stock price is 166% more volatile than the S&P 500.

Dividends

Vedanta Resources pays an annual dividend of $0.24 per share and has a dividend yield of 2.3%. Turquoise Hill Resources does not pay a dividend.

Summary

Turquoise Hill Resources beats Vedanta Resources on 9 of the 12 factors compared between the two stocks.

Turquoise Hill Resources Company Profile

Turquoise Hill Resources Ltd., together with its subsidiaries, operates as a mining company. The company explores for copper, gold, silver, and molybdenum deposits. It primarily develops and operates the Oyu Tolgoi mine located in the southern Mongolia. The company was formerly known as Ivanhoe Mines Ltd. and changed its name to Turquoise Hill Resources Ltd. in August 2012. Turquoise Hill Resources Ltd. was founded in 1994 and is headquartered in Vancouver, Canada.

Vedanta Resources Company Profile

Vedanta Resources plc operates as a diversified natural resources company in India, Zambia, South Africa, Namibia, the United Arab Emirates, Ireland, Australia, and Liberia. It primarily produces zinc, lead, silver, copper, iron ore, and aluminum deposits. The company also explores for, extracts, and processes minerals, as well as oil and gas. In addition, it operates as a power producer with an installed capacity of 8.4 gigawatts of thermal based power generation and 274 megawatts of wind power generation. Further, the company engages in the port operations business in India; mining, smelting, and refining copper, aluminum, zinc, and iron ore; and gold and silver processing activity. Additionally, it provides accommodation and catering services; and leases medical equipment, as well as offers related building and conducting services. The company was founded in 1976 and is headquartered in London, the United Kingdom. Vedanta Resources plc is a subsidiary of Volcan Investments Limited.

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