Fortuna Mining (NYSE:FSM – Get Free Report) and Ferroglobe (NASDAQ:GSM – Get Free Report) are both materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, analyst recommendations, profitability, institutional ownership, risk, dividends and earnings.
Risk and Volatility
Fortuna Mining has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500. Comparatively, Ferroglobe has a beta of 1.06, indicating that its share price is 6% more volatile than the S&P 500.
Insider & Institutional Ownership
33.8% of Fortuna Mining shares are held by institutional investors. Comparatively, 89.6% of Ferroglobe shares are held by institutional investors. 1.0% of Fortuna Mining shares are held by insiders. Comparatively, 13.1% of Ferroglobe shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Fortuna Mining and Ferroglobe”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Fortuna Mining | $947.06 million | 2.84 | $287.47 million | $1.18 | 7.70 |
| Ferroglobe | $1.34 billion | 0.54 | -$170.70 million | ($0.22) | -17.45 |
Fortuna Mining has higher earnings, but lower revenue than Ferroglobe. Ferroglobe is trading at a lower price-to-earnings ratio than Fortuna Mining, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Fortuna Mining and Ferroglobe’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Fortuna Mining | 31.99% | 17.48% | 12.88% |
| Ferroglobe | -2.96% | -3.73% | -1.78% |
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Fortuna Mining and Ferroglobe, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Fortuna Mining | 0 | 1 | 4 | 0 | 2.80 |
| Ferroglobe | 1 | 1 | 1 | 0 | 2.00 |
Fortuna Mining currently has a consensus price target of $14.00, suggesting a potential upside of 54.12%. Ferroglobe has a consensus price target of $6.00, suggesting a potential upside of 56.25%. Given Ferroglobe’s higher probable upside, analysts plainly believe Ferroglobe is more favorable than Fortuna Mining.
Summary
Fortuna Mining beats Ferroglobe on 8 of the 13 factors compared between the two stocks.
About Fortuna Mining
Fortuna Mining Corp. engages in the precious and base metal mining in Argentina, Burkina Faso, Mexico, Peru, and Côte d’Ivoire. It operates through Mansfield, Sanu, Sango, Cuzcatlan, Bateas, and Corporate segments. The company primarily explores for silver, lead, zinc, and gold. Its flagship project is the Séguéla gold mine, which consists of approximately 62,000 hectares and is located in the Worodougou Region of the Woroba District, Côte d’Ivoire. The company was formerly known as Fortuna Silver Mines Inc. and changed its name to Fortuna Mining Corp. in June 2024. Fortuna Mining Corp. was incorporated in 1990 and is based in Vancouver, Canada.
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.
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