Reviewing Turquoise Hill Resources (TRQ) and Its Peers

Turquoise Hill Resources (NYSE: TRQ) is one of 104 public companies in the “Integrated Mining” industry, but how does it weigh in compared to its peers? We will compare Turquoise Hill Resources to related companies based on the strength of its institutional ownership, risk, earnings, valuation, profitability, dividends and analyst recommendations.

Profitability

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

Net Margins Return on Equity Return on Assets
Turquoise Hill Resources 14.20% 1.60% 1.01%
Turquoise Hill Resources Competitors -15,079.56% -2.83% -2.33%

Earnings & Valuation

This table compares Turquoise Hill Resources and its peers gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Turquoise Hill Resources $892.02 million $159.41 million 52.34
Turquoise Hill Resources Competitors $6.81 billion $2.78 billion -16.11

Turquoise Hill Resources’ peers have higher revenue and earnings than Turquoise Hill Resources. Turquoise Hill Resources is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Volatility and Risk

Turquoise Hill Resources has a beta of 0.4, meaning that its stock price is 60% less volatile than the S&P 500. Comparatively, Turquoise Hill Resources’ peers have a beta of 0.81, meaning that their average stock price is 20% less volatile than the S&P 500.

Institutional and Insider Ownership

32.9% of Turquoise Hill Resources shares are held by institutional investors. Comparatively, 37.3% of shares of all “Integrated Mining” companies are held by institutional investors. 12.1% of shares of all “Integrated Mining” companies are held by company insiders. 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.

Analyst Ratings

This is a summary of current recommendations and price targets for Turquoise Hill Resources and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Turquoise Hill Resources 0 3 3 0 2.50
Turquoise Hill Resources Competitors 917 2964 3036 82 2.33

Turquoise Hill Resources presently has a consensus target price of $5.00, indicating a potential upside of 59.24%. As a group, “Integrated Mining” companies have a potential upside of 6.87%. Given Turquoise Hill Resources’ stronger consensus rating and higher probable upside, equities analysts plainly believe Turquoise Hill Resources is more favorable than its peers.

Summary

Turquoise Hill Resources beats its peers on 7 of the 13 factors compared.

About Turquoise Hill Resources

Turquoise Hill Resources Ltd. is an international mining company. The Company focuses on the operation and further development of the Oyu Tolgoi copper-gold mine in Southern Mongolia, which is the Company’s principal material mineral resource property. The Company’s Oyu Tolgoi mine is held through approximately 65% interest in Oyu Tolgoi LLC (Oyu Tolgoi) and the remaining approximately 35% interest is held by Erdenes Oyu Tolgoi LLC (Erdenes). The Company’s Oyu Tolgoi mine is located approximately 550 kilometers south of Ulaanbaatar, Mongolia’s capital city, and 80 kilometers north of the Mongolia-China border. The Company’s Mineralization on the property consists of porphyry-style copper, gold, silver and molybdenum contained in a linear structural trend (the Oyu Tolgoi Trend) of deposits throughout this trend. They include, from south to north, the Heruga Deposit, the Oyut deposit and the Hugo Dummett deposits (Hugo South, Hugo North and Hugo North Extension).

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