Verify Smart (OTCMKTS:VSMR) versus Freeport-McMoRan (NYSE:FCX) Head-To-Head Comparison

Freeport-McMoRan (NYSE:FCX) and Verify Smart (OTCMKTS:VSMR) are both basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, dividends, valuation, earnings, analyst recommendations and profitability.

Risk & Volatility

Freeport-McMoRan has a beta of 1.85, suggesting that its stock price is 85% more volatile than the S&P 500. Comparatively, Verify Smart has a beta of 3.51, suggesting that its stock price is 251% more volatile than the S&P 500.

Insider and Institutional Ownership

80.8% of Freeport-McMoRan shares are owned by institutional investors. 0.8% of Freeport-McMoRan shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Freeport-McMoRan and Verify Smart’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Freeport-McMoRan	7.42%	7.50%	3.92%
Verify Smart	N/A	N/A	N/A

Valuation and Earnings

This table compares Freeport-McMoRan and Verify Smart”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Freeport-McMoRan	$25.46 billion	2.06	$1.89 billion	$1.29	28.29
Verify Smart	$220,000.00	31.08	N/A	N/A	N/A

Freeport-McMoRan has higher revenue and earnings than Verify Smart.

Analyst Ratings

This is a summary of recent recommendations for Freeport-McMoRan and Verify Smart, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Freeport-McMoRan	0	8	6	1	2.53
Verify Smart	0	0	0	0	0.00

Freeport-McMoRan presently has a consensus target price of $51.46, suggesting a potential upside of 41.04%. Given Freeport-McMoRan’s stronger consensus rating and higher probable upside, equities analysts clearly believe Freeport-McMoRan is more favorable than Verify Smart.

Summary

Freeport-McMoRan beats Verify Smart on 10 of the 12 factors compared between the two stocks.

About Freeport-McMoRan

Freeport-McMoRan Inc. engages in the mining of mineral properties in North America, South America, and Indonesia. It primarily explores for copper, gold, molybdenum, silver, and other metals. The company's assets include the Grasberg minerals district in Indonesia; Morenci, Bagdad, Safford, Sierrita, and Miami in Arizona; Chino and Tyrone in New Mexico; and Henderson and Climax in Colorado, North America, as well as Cerro Verde in Peru and El Abra in Chile. The company was formerly known as Freeport-McMoRan Copper & Gold Inc. and changed its name to Freeport-McMoRan Inc. in July 2014. Freeport-McMoRan Inc. was incorporated in 1987 and is headquartered in Phoenix, Arizona.

About Verify Smart

Verify Smart Corp. provides wireless software solutions focused on IP fraud protection for secure authenticated transactions and celebrity services for fans interactions worldwide. The company's software solutions are delivered as Software as a Service model over the Internet, and allows its clients to access the company's application software and databases. Its products include VerifyNGo, which provides instant personal verification to combat fraud and identity theft through mobile device; and Prvii, a mobile communications service that enables celebrities to monetize their fan base via messaging channels. Verify Smart Corp. promotes its products and services across various markets, including consumer brands, financial services, sports/entertainment, governments, and educational institutions. The company was formerly known as Treasure Explorations Inc. and changed its name to Verify Smart Corp. in March 2009. Verify Smart Corp. was founded in 2006 and is based in Fernley, Nevada.