Better Buy: Freeport-McMoRan Inc vs. Vale SA

The commodity downturn that started in 2011 was tough on mining industry giants Freeport-McMoRan Inc (NYSE: FCX) and Vale SA (NYSE: VALE). Both were left bleeding red ink and forced to sell assets and cut costs to support their balance sheets. Now that commodity prices have turned higher again, however, it's time to look to the future. Both Vale and Freeport have clouds darkening their paths forward. Investors should stick with the miner that's closer to a resolution.

Vale's business is built around iron ore. That business accounted for roughly 70% of revenue in the second quarter and a massive 80% of adjusted EBITDA. This isn't good or bad, per se; it's just important to note that iron ore is what drives Vale's results. If that's not what you want, then you shouldn't even be looking at this miner.

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Source: Fool.com