Critical Survey: Teck Resources (NYSE:TECK) & TMC the metals (NASDAQ:TMC)

TMC the metals (NASDAQ:TMC) and Teck Resources (NYSE:TECK) are both basic materials companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, analyst recommendations and dividends.

Insider and Institutional Ownership

4.4% of TMC the metals shares are owned by institutional investors. Comparatively, 78.1% of Teck Resources shares are owned by institutional investors. 27.6% of TMC the metals shares are owned by company insiders. Comparatively, 0.1% of Teck Resources shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings for TMC the metals and Teck Resources, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TMC the metals	1	1	2	0	2.25
Teck Resources	0	13	8	2	2.52

TMC the metals currently has a consensus target price of $11.38, suggesting a potential upside of 84.06%. Teck Resources has a consensus target price of $53.33, suggesting a potential downside of 1.63%. Given TMC the metals’ higher probable upside, research analysts clearly believe TMC the metals is more favorable than Teck Resources.

Volatility and Risk

TMC the metals has a beta of 1.85, meaning that its share price is 85% more volatile than the S&P 500. Comparatively, Teck Resources has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500.

Valuation and Earnings

This table compares TMC the metals and Teck Resources”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TMC the metals	N/A	N/A	-$81.94 million	($0.77)	-8.03
Teck Resources	$6.48 billion	4.02	$296.30 million	$1.78	30.46

Teck Resources has higher revenue and earnings than TMC the metals. TMC the metals is trading at a lower price-to-earnings ratio than Teck Resources, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares TMC the metals and Teck Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TMC the metals	N/A	-6,267.63%	-96.64%
Teck Resources	11.93%	4.14%	2.41%

Summary

Teck Resources beats TMC the metals on 11 of the 14 factors compared between the two stocks.

About TMC the metals

TMC the metals company Inc., a deep-sea minerals exploration company, focuses on the collection, processing, and refining of polymetallic nodules found on the seafloor in California. It primarily explores for nickel, cobalt, copper, and manganese products. The company holds exploration and commercial rights in three polymetallic nodule contract areas in the Clarion Clipperton Zone of the Pacific Ocean. Its products are used in electric vehicles (EV), renewable energy storage markets, EV wiring, energy transmission, manganese alloy production required for steel production, and other applications. The company was formerly known as Sustainable Opportunities Acquisition Corporation and changed its name to TMC the metals company Inc. TMC the metals company Inc. was founded in 2011 and is based in Vancouver, Canada.

About Teck Resources

Teck Resources Limited engages in exploring for, acquiring, developing, and producing natural resources in Asia, Europe, and North America. The company operates through Steelmaking Coal, Copper, Zinc, and Energy segments. Its principal products include copper, zinc, steelmaking coal, and blended bitumen. The company also produces lead, silver, and molybdenum; and various specialty and other metals, chemicals, and fertilizers. In addition, it explores for gold. The company was formerly known as Teck Cominco Limited and changed its name to Teck Resources Limited in April 2009. The company was founded in 1913 and is headquartered in Vancouver, Canada.