Critical Comparison: Deep Yellow (OTCMKTS:DYLLF) and Glencore (OTCMKTS:GLNCY)

Deep Yellow (OTCMKTS:DYLLF) and Glencore (OTCMKTS:GLNCY) are both basic materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, profitability, analyst recommendations, earnings, dividends and risk.

Insider and Institutional Ownership

0.1% of Glencore shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Deep Yellow and Glencore’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Deep Yellow	N/A	N/A	N/A
Glencore	N/A	N/A	N/A

Earnings and Valuation

This table compares Deep Yellow and Glencore”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Deep Yellow	$7.51 million	206.49	$4.64 million	N/A	N/A
Glencore	$230.94 billion	0.35	-$1.63 billion	N/A	N/A

Deep Yellow has higher earnings, but lower revenue than Glencore.

Analyst Recommendations

This is a summary of current ratings and price targets for Deep Yellow and Glencore, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Deep Yellow	0	1	0	0	2.00
Glencore	0	4	4	1	2.67

Deep Yellow presently has a consensus target price of $1.85, indicating a potential upside of 15.63%. Glencore has a consensus target price of $9.30, indicating a potential downside of 31.52%. Given Deep Yellow’s higher probable upside, equities research analysts plainly believe Deep Yellow is more favorable than Glencore.

Volatility and Risk

Deep Yellow has a beta of 0.72, indicating that its share price is 28% less volatile than the S&P 500. Comparatively, Glencore has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500.

Summary

Glencore beats Deep Yellow on 5 of the 9 factors compared between the two stocks.

About Deep Yellow

Deep Yellow Limited, together with its subsidiaries, operates as a uranium exploration company in Namibia. The company holds a 100% interest in the Reptile project, which covers an area of 896 square kilometers (km2); 65% interest in the Nova Joint Venture covering an area of 599 km2; and 85% interest in the Yellow Dune Joint Venture covering an area of 190 km2. It is involved in the iron ore exploration and property investment businesses. The company was incorporated in 1985 and is headquartered in Subiaco, Australia.

About Glencore

Glencore plc engages in the production, refinement, processing, storage, transport, and marketing of metals and minerals, and energy products in the Americas, Europe, Asia, Africa, and Oceania. It operates through two segments: Marketing Activities and Industrial Activities. The company engages in production and marketing copper, cobalt, lead, nickel, zinc, chrome ore, ferrochrome, vanadium, aluminum, alumina, and iron ore; and coal, crude oil, refined products, and natural gas, as well as oil exploration/production and refining/distribution. It also operates marketing and distribution of physical commodities sourced from third party producers and company’s production to industrial consumers, including the battery, electronic, construction, automotive, steel, energy, and oil industries. In addition, the company provides financing, logistics, and other services to producers and consumers of commodities. Glencore plc was founded in 1974 and is headquartered in Baar, Switzerland.