Head-To-Head Contrast: South32 (OTCMKTS:SOUHY) vs. NioCorp Developments (NASDAQ:NB)

South32 (OTCMKTS:SOUHY) and NioCorp Developments (NASDAQ:NB) are both basic materials companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, risk, institutional ownership and valuation.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for South32 and NioCorp Developments, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
South32	1	5	0	0	1.83
NioCorp Developments	0	0	2	0	3.00

NioCorp Developments has a consensus price target of $4.50, suggesting a potential upside of 12.78%. Given NioCorp Developments’ stronger consensus rating and higher probable upside, analysts clearly believe NioCorp Developments is more favorable than South32.

Institutional & Insider Ownership

0.1% of South32 shares are held by institutional investors. Comparatively, 4.0% of NioCorp Developments shares are held by institutional investors. 0.2% of South32 shares are held by insiders. Comparatively, 19.1% of NioCorp Developments shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares South32 and NioCorp Developments’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
South32	N/A	N/A	N/A
NioCorp Developments	N/A	-298.16%	-91.68%

Volatility & Risk

South32 has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500. Comparatively, NioCorp Developments has a beta of -0.37, indicating that its stock price is 137% less volatile than the S&P 500.

Valuation and Earnings

This table compares South32 and NioCorp Developments”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
South32	$5.48 billion	1.56	-$203.00 million	N/A	N/A
NioCorp Developments	N/A	N/A	-$16.70 million	($0.34)	-11.74

NioCorp Developments has lower revenue, but higher earnings than South32.

Summary

NioCorp Developments beats South32 on 6 of the 10 factors compared between the two stocks.

About South32

South32 Limited operates as a diversified metals and mining company in Australia, India, China, Japan, the Middle East, Mozambique, the Netherlands, Brazil, Russia, South Africa, South Korea, the United States, and internationally. The company operates through Worsley Alumina, Brazil Alumina, Brazil Aluminium, Hillside Aluminium, Mozal Aluminium, Sierra Gorda, Cannington, Hermosa, Cerro Matoso, Illawarra Metallurgical Coal, Australia Manganese, and South Africa Manganese segments. It has a portfolio of assets producing bauxite, alumina, aluminum, copper, silver, lead, zinc, nickel, metallurgical coal, manganese, ferronickel, and other base metals. The company also exports its products. South32 Limited was incorporated in 2000 and is headquartered in 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.