ERO vs RIO vs BHP vs SCCO vs FCX

For growth investors, Ero Copper Corp.

(ERO) is the stronger pick with 70. 0% revenue growth year-over-year, versus -7. 9% for BHP Group Limited (BHP). Ero Copper Corp. (ERO) offers the better valuation at 11. 0x trailing P/E (6. 9x forward), making it the more compelling value choice. Analysts rate Freeport-McMoRan Inc. (FCX) a "Buy" — based on 41 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, Ero Copper Corp.

(ERO) is the cheapest at 11. 0x versus Freeport-McMoRan Inc. at 40. 6x. On forward P/E, Ero Copper Corp. is actually cheaper at 6. 9x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Ero Copper Corp. wins at 0. 19x versus BHP Group Limited's 5. 93x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Southern Copper Corporation (SCCO) delivered a total return of +163.

0%, compared to +22. 6% for Ero Copper Corp. (ERO). Over 10 years, the gap is even starker: SCCO returned +690. 4% versus BHP's +401. 0%. 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), Rio Tinto Group (RIO) is the lower-risk stock at 1.

04β versus Southern Copper Corporation's 1. 88β — meaning SCCO is approximately 81% more volatile than RIO relative to the S&P 500. On balance sheet safety, Rio Tinto Group (RIO) carries a lower debt/equity ratio of 24% versus 67% for Ero Copper Corp. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Ero Copper Corp.

(ERO) is pulling ahead at 70. 0% versus -7. 9% for BHP Group Limited (BHP). On earnings-per-share growth, the picture is similar: Ero Copper Corp. grew EPS 490. 9% year-over-year, compared to 14. 1% for BHP Group Limited. Over a 3-year CAGR, ERO leads at 23. 3% 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.

Ero Copper Corp.

(ERO) is the more profitable company, earning 33. 6% net margin versus 8. 6% for Freeport-McMoRan Inc. — meaning it keeps 33. 6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: SCCO leads at 52. 2% versus 24. 4% for FCX. At the gross margin level — before operating expenses — BHP leads at 82. 2%, 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, Ero Copper Corp. (ERO) is the more undervalued stock at a PEG of 0. 19x versus BHP Group Limited's 5. 93x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Ero Copper Corp. (ERO) trades at 6. 9x forward P/E versus 26. 4x for Southern Copper Corporation — 19. 5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ERO: 10. 6% to $31. 50.

In this comparison, RIO (4.

1% yield), BHP (3. 0% yield), SCCO (1. 6% yield), FCX (1. 0% yield) pay a dividend. ERO does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Rio Tinto Group (RIO) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1.

04), 4. 1% yield, +438. 0% 10Y return). Ero Copper Corp. (ERO) carries a higher beta of 1. 56 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (RIO: +438. 0%, ERO: +632. 9%), 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: ERO is a small-cap high-growth stock; RIO is a large-cap deep-value stock; BHP is a large-cap quality compounder stock; SCCO is a mid-cap high-growth stock; FCX is a mid-cap quality compounder stock. RIO, BHP, SCCO, FCX pay a dividend while ERO does not, making them suitable for different income and tax situations. 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.