Minco Capital (OTCMKTS:MGHCF) & Ferroglobe (NASDAQ:GSM) Critical Analysis

Ferroglobe (NASDAQ:GSM) and Minco Capital (OTCMKTS:MGHCF) are both small-cap basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, dividends, institutional ownership, analyst recommendations and earnings.

Analyst Ratings

This is a summary of recent ratings and price targets for Ferroglobe and Minco Capital, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ferroglobe	0	1	0	0	2.00
Minco Capital	0	0	0	0	0.00

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ferroglobe	$1.64 billion	0.38	$82.66 million	$0.02	168.00
Minco Capital	N/A	N/A	-$1.04 million	N/A	N/A

Ferroglobe has higher revenue and earnings than Minco Capital.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ferroglobe	0.32%	6.36%	3.43%
Minco Capital	N/A	-3.84%	-3.70%

Insider & Institutional Ownership

89.6% of Ferroglobe shares are owned by institutional investors. 13.1% of Ferroglobe shares are owned by company 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

Ferroglobe has a beta of 1.83, indicating that its stock price is 83% more volatile than the S&P 500. Comparatively, Minco Capital has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500.

Summary

Ferroglobe beats Minco Capital on 9 of the 9 factors compared between the two stocks.

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 Minco Capital

Minco Capital Corp., an investment company, focuses on investing in public and private companies and assets to generate income and achieve long-term capital appreciation. The company was formerly known as Minco Gold Corporation and changed its name to Minco Capital Corp. in February 2019. Minco Capital Corp. was incorporated in 1982 and is headquartered in Vancouver, Canada.