NexGen Energy (NYSE:NXE – Get Free Report) and Ferroglobe (NASDAQ:GSM – Get Free Report) are both basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, profitability, risk, valuation and earnings.
Valuation & Earnings
This table compares NexGen Energy and Ferroglobe”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NexGen Energy | N/A | N/A | -$56.60 million | ($0.25) | -31.94 |
| Ferroglobe | $1.64 billion | 0.47 | $23.54 million | ($0.57) | -7.33 |
Risk and Volatility
NexGen Energy has a beta of 1.47, meaning that its stock price is 47% more volatile than the S&P 500. Comparatively, Ferroglobe has a beta of 1.69, meaning that its stock price is 69% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for NexGen Energy and Ferroglobe, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NexGen Energy | 0 | 0 | 5 | 1 | 3.17 |
| Ferroglobe | 0 | 1 | 0 | 0 | 2.00 |
Insider and Institutional Ownership
42.4% of NexGen Energy shares are owned by institutional investors. Comparatively, 89.6% of Ferroglobe shares are owned by institutional investors. 5.6% of NexGen Energy shares are owned by company insiders. Comparatively, 13.1% of Ferroglobe shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares NexGen Energy and Ferroglobe’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NexGen Energy | N/A | -18.88% | -13.23% |
| Ferroglobe | -6.99% | -2.85% | -1.51% |
Summary
Ferroglobe beats NexGen Energy on 8 of the 13 factors compared between the two stocks.
About NexGen Energy
NexGen Energy Ltd., an exploration and development stage company, engages in the acquisition, exploration, and evaluation and development of uranium properties in Canada. It holds a 100% interest in the Rook I project that consists of 32 contiguous mineral claims totaling an area of 35,065 hectares located in the southwestern Athabasca Basin of Saskatchewan. The company 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.
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