Head-To-Head Analysis: Western Copper and Gold (NYSE:WRN) versus Ferroglobe (NASDAQ:GSM)

Ferroglobe (NASDAQ:GSMGet Rating) and Western Copper and Gold (NYSE:WRNGet Rating) are both small-cap basic materials companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, dividends, valuation, profitability and institutional ownership.

Insider & Institutional Ownership

31.2% of Ferroglobe shares are owned by institutional investors. Comparatively, 12.1% of Western Copper and Gold shares are owned by institutional investors. 13.1% of Ferroglobe shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

Ferroglobe has a beta of 2.33, meaning that its stock price is 133% more volatile than the S&P 500. Comparatively, Western Copper and Gold has a beta of 2.26, meaning that its stock price is 126% more volatile than the S&P 500.

Profitability

This table compares Ferroglobe and Western Copper and Gold’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ferroglobe 5.76% 43.57% 9.65%
Western Copper and Gold N/A -3.82% -3.72%

Earnings & Valuation

This table compares Ferroglobe and Western Copper and Gold’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ferroglobe $1.78 billion 0.62 -$110.62 million $0.62 9.47
Western Copper and Gold N/A N/A -$2.96 million ($0.03) -45.33

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

Analyst Recommendations

This is a breakdown of current recommendations for Ferroglobe and Western Copper and Gold, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ferroglobe 0 0 1 0 3.00
Western Copper and Gold 0 0 1 0 3.00

Western Copper and Gold has a consensus price target of $4.50, indicating a potential upside of 230.88%. Given Western Copper and Gold’s higher probable upside, analysts plainly believe Western Copper and Gold is more favorable than Ferroglobe.

Summary

Ferroglobe beats Western Copper and Gold on 9 of the 11 factors compared between the two stocks.

About Ferroglobe

(Get Rating)

Ferroglobe PLC operates in the silicon and specialty metals industry 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, as well as silicon metal for primary and secondary aluminum producers; 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. The company also 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. In addition, it provides silica fume, a by-product of the electrometallurgical process of silicon metal and ferrosilicon. Further, the company operates quartz mines in Spain, South Africa, the United States, and Canada; and low-ash metallurgical coal mines in the United States, as well as holds interests in hydroelectric power plant in France. 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 and changed its name to Ferroglobe PLC in December 2015. The company was incorporated in 2015 and is headquartered in London, the United Kingdom. Ferroglobe PLC is a subsidiary of Grupo Villar Mir, S.A.U.

About Western Copper and Gold

(Get Rating)

Western Copper and Gold Corporation, an exploration stage company, engages in the exploration and development of mineral properties in Canada. The company explores for gold, copper, silver, and molybdenum deposits. Its principal property is the Casino mineral property that comprise 1,136 full and partial quartz claims, and 55 placer claims located in Yukon, Canada. The company was formerly known as Western Copper Corporation and changed its name to Western Copper and Gold Corporation in October 2011. Western Copper and Gold Corporation was incorporated in 2006 and is headquartered in Vancouver, Canada.

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