Comparing INTERSERVE PLC/ADR (OTCMKTS:ISVJY) and Ero Copper (NYSE:ERO)

Ero Copper (NYSE:ERO) and INTERSERVE PLC/ADR (OTCMKTS:ISVJY) are both small-cap basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, earnings, valuation, profitability and dividends.

Profitability

This table compares Ero Copper and INTERSERVE PLC/ADR’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%
INTERSERVE PLC/ADR	N/A	N/A	N/A

Institutional & Insider Ownership

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

Risk and Volatility

Ero Copper has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500. Comparatively, INTERSERVE PLC/ADR has a beta of 4.49, meaning that its share price is 349% more volatile than the S&P 500.

Earnings and Valuation

This table compares Ero Copper and INTERSERVE PLC/ADR”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ero Copper	$464.13 million	3.00	$92.80 million	$0.17	79.35
INTERSERVE PLC/ADR	$3.88 billion	0.00	-$176.46 million	N/A	N/A

Ero Copper has higher earnings, but lower revenue than INTERSERVE PLC/ADR.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Ero Copper and INTERSERVE PLC/ADR, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ero Copper	0	0	7	1	3.13
INTERSERVE PLC/ADR	0	0	0	0	0.00

Ero Copper currently has a consensus target price of $26.33, indicating a potential upside of 95.21%. Given Ero Copper’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Ero Copper is more favorable than INTERSERVE PLC/ADR.

Summary

Ero Copper beats INTERSERVE PLC/ADR on 10 of the 12 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 INTERSERVE PLC/ADR

Interserve Plc provides advice, design, construction, equipment, facilities management, and citizen services in the United Kingdom and internationally. Its Support Services segment offers support services to public- and private-sector clients. The company's Construction segment designs, constructs, and maintains buildings and infrastructure. Its Equipment Services segment designs, hires, and sells formwork, falsework, and related access equipment. The company also engages in the property management, development, rental, and leasing activities; management of five community rehabilitation companies; pension trustee activities; fitting out and refurbishment of offices and other buildings; equipment hire and sales activities; rental of plant and machinery; and provision of transport and maintenance services to the oil and gas industry. In addition, it offers healthcare, vocational training, welfare-to-work, employment, probation and rehabilitation, contract and window cleaning, catering, defense sector and industrial support, asbestos, supply, security manpower and support, manned guarding security, mechanical and electrical engineering, army training estate, personnel and management, fire suppression and detection system, insurance, education, and building maintenance services. Further, the company provides oil-field maintenance, fabrication, and construction services; support services for integration of disabled people into cleaning contracts and the transport sector; operational and financial services to PFI/PPP projects; management/maintenance services for slough borough council; management/maintenance services for MoD; and solutions for building/infrastructure projects. Additionally, it offers mechanical, electrical, and engineering services; and acts as a trustee. The company was formerly known as Tilbury Douglas Plc and changed its name to Interserve Plc in February 2001. Interserve Plc was founded in 1884 and is headquartered in Twyford, the United Kingdom.