Glencore (OTCMKTS:GLNCY) & Ferroglobe (NASDAQ:GSM) Head to Head Analysis

Ferroglobe (NASDAQ:GSM) and Glencore (OTCMKTS:GLNCY) are both basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, earnings, valuation, institutional ownership, profitability and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ferroglobe	-8.09%	-5.45%	-2.71%
Glencore	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Ferroglobe and Glencore, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ferroglobe	1	1	1	0	2.00
Glencore	0	3	6	1	2.80

Ferroglobe presently has a consensus price target of $6.00, indicating a potential upside of 26.85%. Glencore has a consensus price target of $9.30, indicating a potential downside of 39.69%. Given Ferroglobe’s higher probable upside, equities analysts plainly believe Ferroglobe is more favorable than Glencore.

Risk and Volatility

Ferroglobe has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500. Comparatively, Glencore has a beta of 0.61, suggesting that its share price is 39% less volatile than the S&P 500.

Dividends

Ferroglobe pays an annual dividend of $0.06 per share and has a dividend yield of 1.3%. Glencore pays an annual dividend of $0.09 per share and has a dividend yield of 0.6%. Ferroglobe pays out -10.0% of its earnings in the form of a dividend. Ferroglobe has raised its dividend for 1 consecutive years. Ferroglobe is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional and Insider Ownership

89.6% of Ferroglobe shares are held by institutional investors. Comparatively, 0.1% of Glencore shares are held by institutional investors. 13.1% of Ferroglobe shares are held by insiders. 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.

Earnings & Valuation

This table compares Ferroglobe and Glencore”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ferroglobe	$1.34 billion	0.66	-$170.70 million	($0.60)	-7.88
Glencore	$247.54 billion	0.37	$363.00 million	N/A	N/A

Glencore has higher revenue and earnings than Ferroglobe.

About Ferroglobe

Ferroglobe PLC produces and sells silicon metal, and silicon and manganese-based ferroalloys in the United States, Europe, and internationally. It provides silicone chemicals that are used in a range of applications, including personal care items, construction-related products, health care products, and electronics; and silicon metal for primary and secondary aluminum producers. The company also offers silicomanganese, which is used as deoxidizing agent in the steel manufacturing process; and ferromanganese that is used as a deoxidizing, desulphurizing, and degassing agent in the removal of nitrogen and other harmful elements from steel. In addition, it offers ferrosilicon products that are used to produce stainless steel, carbon steel, and various other steel alloys, as well as to manufacture electrodes and aluminum; calcium silicon, which is used in the deoxidation and desulfurization of liquid steel, and production of coatings for cast iron pipes, as well as in the welding process of powder metal and in pyrotechnics; and nodularizers and inoculants, which are used in the production of iron. Further, the company provides silica fume, a by-product of the electrometallurgical process of silicon metal and ferrosilicon. Additionally, it operates quartz mines in South Africa, Spain, the United States, and Canada; and low-ash metallurgical coal mines in the United States; and a charcoal production facility in South Africa, as well as holds interests in hydroelectric power plant in France. The company serves silicone chemical producers; aluminum and steel manufacturers; auto companies and their suppliers; ductile iron foundries; manufacturers of photovoltaic solar cells and computer chips; and concrete producers. Ferroglobe PLC was formerly known as VeloNewco Limited and changed its name to Ferroglobe PLC in December 2015. The company was incorporated in 2015 and is headquartered in London, the United Kingdom.

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.