Head to Head Survey: Ferroglobe (NASDAQ:GSM) versus Minco Capital (OTCMKTS:MGHCF)

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

Volatility and Risk

Minco Capital has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500. Comparatively, Ferroglobe has a beta of 1.89, indicating that its stock price is 89% more volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Minco Capital	N/A	N/A	-$1.04 million	N/A	N/A
Ferroglobe	$1.64 billion	0.45	$82.66 million	$0.02	198.00

Ferroglobe has higher revenue and earnings than Minco Capital.

Profitability

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

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

Analyst Recommendations

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

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

Insider & Institutional Ownership

89.6% 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, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

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

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.

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.