Analyzing KAZ Minerals (KZMYY) & Ferroglobe (GSM)

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

Earnings & Valuation

This table compares KAZ Minerals and Ferroglobe’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
KAZ Minerals $1.66 billion 3.61 $447.00 million $0.20 33.55
Ferroglobe $1.74 billion 1.11 $25.17 million $0.13 86.92

KAZ Minerals has higher earnings, but lower revenue 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.

Profitability

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

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

Institutional & Insider Ownership

41.2% of Ferroglobe 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, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

KAZ Minerals has a beta of 2.89, suggesting that its share price is 189% more volatile than the S&P 500. Comparatively, Ferroglobe has a beta of 1.61, suggesting that its share price is 61% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for KAZ Minerals and Ferroglobe, as reported by MarketBeat.com.

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

Ferroglobe has a consensus target price of $20.50, suggesting a potential upside of 81.42%. Given Ferroglobe’s higher possible upside, analysts clearly believe Ferroglobe is more favorable than KAZ Minerals.

Summary

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

About KAZ Minerals

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.

About Ferroglobe

Ferroglobe PLC operates in the silicon and specialty metals industry in the United States, Europe, and internationally. The company offers silicon metals that are used in personal care items, construction-related products, health care products, and electronics, as well as used in the manufacture of silicone chemicals; 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. It also provides ferrosilicon products that are used to produce stainless steel, carbon steel, and various other steel alloys, as well as to manufacture electrodes and aluminum; silico calcium, 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; nodularizers and inoculants, which are used in the production of iron; and silica fume, a by-product of the electrometallurgical process of silicon metal and ferrosilicon. In addition, the company operates quartz mines located in Spain, South Africa, the United States, and Canada; and low-ash and metallurgical coal mines in the United States. It serves silicone chemical, aluminum, and steel manufacturers; auto companies and their suppliers; ductile iron foundries; manufacturers of photovoltaic solar cells and computer chips; and concrete producers. The company was formerly known as VeloNewco Limited. Ferroglobe PLC was incorporated in 2015 and is headquartered in London, the United Kingdom. Ferroglobe PLC is a subsidiary of Grupo Villar Mir, S.A.

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