Glencore (OTCMKTS: GLNCY) and Paramount Resources (OTCMKTS:PRMRF) are both basic materials companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, risk, earnings, analyst recommendations, valuation, institutional ownership and profitability.
Insider & Institutional Ownership
0.1% of Glencore shares are held by institutional investors. Comparatively, 0.6% of Paramount Resources shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Glencore pays an annual dividend of $0.34 per share and has a dividend yield of 3.2%. Paramount Resources does not pay a dividend. Glencore pays out 43.6% of its earnings in the form of a dividend.
This table compares Glencore and Paramount Resources’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares Glencore and Paramount Resources’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Glencore||$205.48 billion||0.38||$5.78 billion||$0.78||13.72|
|Paramount Resources||$378.91 million||4.15||$141.44 million||N/A||N/A|
Glencore has higher revenue and earnings than Paramount Resources.
Risk and Volatility
Glencore has a beta of 2.14, suggesting that its stock price is 114% more volatile than the S&P 500. Comparatively, Paramount Resources has a beta of 2.46, suggesting that its stock price is 146% more volatile than the S&P 500.
This is a breakdown of recent recommendations and price targets for Glencore and Paramount Resources, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Glencore plc engages in the production, refinement, processing, storage, transport and marketing of metals and minerals, energy products, and agricultural products worldwide. It operates in three segments: Metals and Minerals, Energy Products, and Agricultural Products. The Metals and Minerals segment is involved in smelting, refining, mining, processing, and storing zinc, copper, lead, alumina, aluminum, ferroalloys, nickel, cobalt, and iron ore. The Energy Products segment activities include coal mining and oil production operations covering crude oil, oil products, steam coal, and metallurgical coal; and investments in ports, vessels, and storage facilities. The Agricultural Products segment engages in the storage, handling, processing, and port facilities of wheat, corn, canola, barley, rice, oil seeds, meals, edible oils, biofuels, cotton, and sugar. Glencore plc markets and delivers physical commodities sourced from third party producers and its production to industrial consumers in the automotive, steel, power generation, oil, and food processing industries. The company was formerly known as Glencore Xstrata plc and changed its name to Glencore plc in May 2014. Glencore plc was founded in 1974 and is headquartered in Baar, Switzerland.
About Paramount Resources
Paramount Resources Ltd., an independent energy company, explores for, develops, produces, and markets natural gas, crude oil, and natural gas liquids in Canada. Its principal properties are located in Alberta and British Columbia. The company also invests in public and private corporations. Paramount Resources Ltd. was founded in 1978 and is based in Calgary, Canada.
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