Financial Survey: Ferroglobe (GSM) versus KAZ Minerals (KZMYY)

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

Institutional and Insider Ownership

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41.2% of Ferroglobe shares are held by institutional investors. 13.1% of Ferroglobe shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Ferroglobe and KAZ Minerals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ferroglobe 0 0 5 0 3.00
KAZ Minerals 0 0 0 0 N/A

Ferroglobe currently has a consensus target price of $20.50, indicating a potential upside of 95.24%. Given Ferroglobe’s higher probable upside, analysts clearly believe Ferroglobe is more favorable than KAZ Minerals.

Profitability

This table compares Ferroglobe and KAZ Minerals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ferroglobe 1.45% 2.32% 1.02%
KAZ Minerals N/A N/A N/A

Valuation and Earnings

This table compares Ferroglobe and KAZ Minerals’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ferroglobe $1.74 billion 1.04 $25.17 million $0.13 80.77
KAZ Minerals $766.00 million 7.58 $177.00 million $0.20 32.50

KAZ Minerals has lower revenue, but higher earnings than Ferroglobe. KAZ Minerals is trading at a lower price-to-earnings ratio than Ferroglobe, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Ferroglobe has a beta of 1.62, suggesting that its stock price is 62% more volatile than the S&P 500. Comparatively, KAZ Minerals has a beta of 2.88, suggesting that its stock price is 188% more volatile than the S&P 500.

Summary

Ferroglobe beats KAZ Minerals on 9 of the 13 factors compared between the two stocks.

Ferroglobe Company Profile

Ferroglobe PLC, formerly VeloNewco Limited, is engaged in silicon and specialty metals industry. The Company produces silicon metal and silicon- and manganese-based alloy, which serves customers in the chemical, aluminum, solar, steel and ductile iron foundry industries. It operates through two segments: Electrometallurgy and Energy. It Electrometallurgy segment includes its coal and quartz mining operations and its silicon metal and ferroalloy production, whereas the Energy segment consists of its hydroelectric power operations. It currently operates approximately 20 production smelting facilities in the field of electrometallurgy: approximately five in Spain, over five in the United States of America, over six in France, over three in South Africa, one in Venezuela, one in Poland, one in Canada, one in Argentina and one in China. It diversifies its production base across approximately five continents, such as Africa, Asia, Europe, North America and South America.

KAZ Minerals Company Profile

KAZ Minerals PLC, together with its subsidiaries, engages in mining, processing, and sale of copper concentrates primarily in Kazakhstan and Kyrgyzstan. It operates through East Region, Bozymchak, Bozshakol, and Aktogay segments. The company operates four underground mines and three concentrators located in the eastern region of Kazakhstan; Bozymchak copper-gold open pit mine located in Kyrgyzstan; the Bozshakol open pit mine in the Pavlodar region of Kazakhstan; and Aktogay open pit located in eastern Kazakhstan. It also produces and sells zinc, silver, gold, and other by-products. The company was formerly known as Kazakhmys PLC and changed its name to KAZ Minerals PLC in October 2014. KAZ Minerals PLC was founded in 1930 and is based in London, the United Kingdom.

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