HBM vs ERO vs SCCO vs FCX vs TECK

For growth investors, Ero Copper Corp.

(ERO) is the stronger pick with 70. 0% revenue growth year-over-year, versus 1. 1% for Freeport-McMoRan Inc. (FCX). Ero Copper Corp. (ERO) offers the better valuation at 10. 5x trailing P/E (6. 6x forward), making it the more compelling value choice. Analysts rate Hudbay Minerals Inc. (HBM) a "Buy" — based on 20 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 10. 5x versus Freeport-McMoRan Inc. at 39. 9x. On forward P/E, Ero Copper Corp. is actually cheaper at 6. 6x. 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 Southern Copper Corporation's 1. 22x — 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 +167.

4%, compared to +19. 0% for Ero Copper Corp. (ERO). Over 10 years, the gap is even starker: SCCO returned +668. 4% versus FCX's +507. 7%. 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), Ero Copper Corp.

(ERO) is the lower-risk stock at 1. 40β versus Hudbay Minerals Inc. 's 1. 91β — meaning HBM is approximately 36% more volatile than ERO relative to the S&P 500. On balance sheet safety, Hudbay Minerals Inc. (HBM) carries a lower debt/equity ratio of 34% 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 1. 1% for Freeport-McMoRan Inc. (FCX). On earnings-per-share growth, the picture is similar: Hudbay Minerals Inc. grew EPS 630. 0% year-over-year, compared to 16. 9% for Freeport-McMoRan Inc.. 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 16. 5% for TECK. At the gross margin level — before operating expenses — SCCO leads at 56. 7%, 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 Southern Copper Corporation's 1. 22x. 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. 6x forward P/E versus 25. 4x for Southern Copper Corporation — 18. 8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ERO: 16. 2% to $31. 50.

In this comparison, SCCO (1.

7% yield), FCX (1. 0% yield), TECK (0. 6% yield) pay a dividend. HBM, ERO do not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Southern Copper Corporation (SCCO) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (1.

7% yield, +668. 4% 10Y return). Hudbay Minerals Inc. (HBM) carries a higher beta of 1. 91 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (SCCO: +668. 4%, HBM: +552. 2%), 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: HBM is a small-cap deep-value stock; ERO is a small-cap high-growth stock; SCCO is a mid-cap high-growth stock; FCX is a mid-cap quality compounder stock; TECK is a mid-cap high-growth stock. SCCO, FCX, TECK pay a dividend while HBM, ERO do 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.