AA vs NEM vs KALU vs FCX

For growth investors, Newmont Corporation (NEM) is the stronger pick with 19.

1% revenue growth year-over-year, versus 1. 1% for Freeport-McMoRan Inc. (FCX). Alcoa Corporation (AA) offers the better valuation at 14. 1x trailing P/E (9. 0x forward), making it the more compelling value choice. Analysts rate Alcoa Corporation (AA) a "Buy" — based on 42 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Alcoa Corporation (AA) is the cheapest at 14.

1x versus Freeport-McMoRan Inc. at 39. 9x. On forward P/E, Alcoa Corporation is actually cheaper at 9. 0x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Kaiser Aluminum Corporation wins at 0. 62x versus Newmont Corporation's 0. 85x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Newmont Corporation (NEM) delivered a total return of +80.

0%, compared to +40. 7% for Kaiser Aluminum Corporation (KALU). Over 10 years, the gap is even starker: FCX returned +507. 7% versus KALU's +135. 1%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Newmont Corporation (NEM) is the lower-risk stock at 0.

75β versus Freeport-McMoRan Inc. 's 1. 79β — meaning FCX is approximately 137% more volatile than NEM relative to the S&P 500. On balance sheet safety, Alcoa Corporation (AA) carries a lower debt/equity ratio of 0% versus 136% for Kaiser Aluminum Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Newmont Corporation (NEM) is pulling ahead at 19.

1% versus 1. 1% for Freeport-McMoRan Inc. (FCX). On earnings-per-share growth, the picture is similar: Alcoa Corporation grew EPS 1486% year-over-year, compared to 16. 9% for Freeport-McMoRan Inc.. Over a 3-year CAGR, NEM leads at 22. 7% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Newmont Corporation (NEM) is the more profitable company, earning 32.

1% net margin versus 3. 3% for Kaiser Aluminum Corporation — meaning it keeps 32. 1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: NEM leads at 46. 9% versus 5. 7% for KALU. At the gross margin level — before operating expenses — NEM leads at 49. 8%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Kaiser Aluminum Corporation (KALU) is the more undervalued stock at a PEG of 0. 62x versus Newmont Corporation's 0. 85x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Alcoa Corporation (AA) trades at 9. 0x forward P/E versus 22. 4x for Freeport-McMoRan Inc. — 13. 4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for NEM: 21. 2% to $137. 50.

All stocks in this comparison pay dividends.

Kaiser Aluminum Corporation (KALU) offers the highest yield at 1. 8%, versus 0. 6% for Alcoa Corporation (AA).

For long-horizon retirement investors, Newmont Corporation (NEM) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

75), 0. 9% yield, +293. 1% 10Y return). Alcoa Corporation (AA) carries a higher beta of 1. 77 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (NEM: +293. 1%, AA: +203. 5%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Basic Materials sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: AA is a mid-cap deep-value stock; NEM is a mid-cap high-growth stock; KALU is a small-cap quality compounder stock; FCX is a mid-cap quality compounder stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.