Fortescue Metals Group (OTCMKTS:FSUGY) vs. NioCorp Developments (NASDAQ:NB) Head-To-Head Review

Fortescue Metals Group (OTCMKTS:FSUGY) and NioCorp Developments (NASDAQ:NB) are both basic materials companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, valuation, dividends, profitability and analyst recommendations.

Profitability

This table compares Fortescue Metals Group and NioCorp Developments’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fortescue Metals Group	N/A	N/A	N/A
NioCorp Developments	N/A	N/A	-21.62%

Insider and Institutional Ownership

2.7% of NioCorp Developments shares are owned by institutional investors. 20.0% of NioCorp Developments shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Fortescue Metals Group and NioCorp Developments’ gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fortescue Metals Group	$17.39 billion	N/A	$6.20 billion	N/A	N/A
NioCorp Developments	N/A	N/A	$1.79 million	N/A	N/A

Fortescue Metals Group has higher revenue and earnings than NioCorp Developments.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Fortescue Metals Group and NioCorp Developments, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fortescue Metals Group	1	2	0	0	1.67
NioCorp Developments	0	0	1	0	3.00

NioCorp Developments has a consensus target price of $13.00, indicating a potential upside of 250.40%. Given NioCorp Developments’ stronger consensus rating and higher possible upside, analysts plainly believe NioCorp Developments is more favorable than Fortescue Metals Group.

Risk & Volatility

Fortescue Metals Group has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500. Comparatively, NioCorp Developments has a beta of -0.19, suggesting that its stock price is 119% less volatile than the S&P 500.

Summary

NioCorp Developments beats Fortescue Metals Group on 5 of the 9 factors compared between the two stocks.

About Fortescue Metals Group

Fortescue Metals Group Limited engages in the exploration, development, production, processing, and sale of iron ore in Australia, China, and internationally. It explores for copper, gold, and lithium deposits; and rare earth elements. The company owns and operates the Chichester Hub that includes the Cloudbreak and Christmas Creek mines located in the Chichester ranges; and the Solomon Hub comprising the Firetail, Kings Valley, and Queens Valley mines located in the Hamersley ranges of Pilbara, Western Australia. It also develops and produces the Eliwana mine situated in the Pilbara region of Western Australia. In addition, the company holds a portfolio of properties situated in Argentina, Peru, Chile, and Brazil, as well as Portugal and Kazakhstan. Further, it provides port towage services; owns and operates rail and port facilities; and focuses on producing green energy and green hydrogen, including derivatives comprising green ammonia. Fortescue Metals Group Limited was incorporated in 1983 and is headquartered in East Perth, Australia.

About NioCorp Developments

NioCorp Developments Ltd. engages in the exploration and development of mineral deposits in North America. It owns and develops the Elk Creek niobium/scandium/titanium project that owns one 226.43-acre parcel of land and associated mineral rights, and an additional 40 acres of mineral rights, as well as an optioned land package that covers an area of 1,396 acres located in Johnson County, southeast Nebraska. The company was formerly known as Quantum Rare Earth Developments Corp. and changed its name to NioCorp Developments Ltd. in March 2013. NioCorp Developments Ltd. was incorporated in 1987 and is headquartered in Centennial, Colorado.