Analyzing Ero Copper (NYSE:ERO) & Nitto Denko (OTCMKTS:NDEKY)

Ero Copper (NYSE:ERO) and Nitto Denko (OTCMKTS:NDEKY) are both basic materials companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, risk, profitability and valuation.

Volatility & Risk

Ero Copper has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500. Comparatively, Nitto Denko has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Ero Copper and Nitto Denko, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ero Copper	0	0	8	2	3.20
Nitto Denko	0	0	0	0	0.00

Ero Copper currently has a consensus target price of $26.33, indicating a potential upside of 112.97%. Given Ero Copper’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Ero Copper is more favorable than Nitto Denko.

Profitability

This table compares Ero Copper and Nitto Denko’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ero Copper	3.67%	11.30%	5.62%
Nitto Denko	12.91%	12.60%	9.90%

Institutional & Insider 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 will outperform the market over the long term.

Valuation & Earnings

This table compares Ero Copper and Nitto Denko”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ero Copper	$464.13 million	2.76	$92.80 million	$0.17	72.74
Nitto Denko	$6.34 billion	2.17	$708.49 million	N/A	N/A

Nitto Denko has higher revenue and earnings than Ero Copper.

Summary

Ero Copper beats Nitto Denko on 8 of the 13 factors compared between the two stocks.

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.

About Nitto Denko

Nitto Denko Corporation primarily engages in the adhesive tapes business in Japan, the Americas, Europe, Asia, and Oceania. It provides double sided tapes, surface protective films, sealing materials, masking tapes, membranes, FPD/touch panel related products, gasket materials, semiconductor manufacturing process products, flexible printed circuit boards, porous films/breathable materials, and packaging tapes. The company also offers functional thermal transfer systems, such as labels, barcode label printers, and label printing software; tapes for electrical and electronic equipment; dust removal products for clean rooms; fluoroplastic sheets and tapes, and fluoroplastic porous films; and materials for housing and construction. In addition, it provides medical products, including transdermal therapeutic systems, athletic tapes, medical adhesive tapes for wearable devices and body sensors, adhesive tapes, and particles for nucleic acid synthesis. The company offers its products to automotive and transportation, housing/housing equipment, infrastructure, material, home appliance and electrical, display, electronic device, medical, packaging, and consumer/personal care industries. Nitto Denko Corporation was incorporated in 1918 and is headquartered in Osaka, Japan.