Silver Standard Resources (NASDAQ:SSRM – Get Free Report) and Glencore (OTCMKTS:GLNCY – Get Free Report) are both basic materials companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.
Risk and Volatility
Silver Standard Resources has a beta of -0.08, suggesting that its share price is 108% less volatile than the S&P 500. Comparatively, Glencore has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.
Earnings and Valuation
This table compares Silver Standard Resources and Glencore”s revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Silver Standard Resources | $995.62 million | 4.65 | -$261.28 million | $0.78 | 29.26 |
Glencore | $230.94 billion | 0.23 | -$1.63 billion | N/A | N/A |
Silver Standard Resources has higher earnings, but lower revenue than Glencore.
Profitability
This table compares Silver Standard Resources and Glencore’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Silver Standard Resources | 12.66% | 4.99% | 3.66% |
Glencore | N/A | N/A | N/A |
Institutional & Insider Ownership
68.3% of Silver Standard Resources shares are owned by institutional investors. Comparatively, 0.1% of Glencore shares are owned by institutional investors. 0.5% of Silver Standard Resources shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a summary of current ratings and price targets for Silver Standard Resources and Glencore, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Silver Standard Resources | 0 | 7 | 0 | 0 | 2.00 |
Glencore | 0 | 1 | 1 | 4 | 3.50 |
Silver Standard Resources presently has a consensus price target of $13.55, indicating a potential downside of 40.62%. Given Silver Standard Resources’ higher possible upside, research analysts clearly believe Silver Standard Resources is more favorable than Glencore.
Summary
Silver Standard Resources beats Glencore on 8 of the 13 factors compared between the two stocks.
About Silver Standard Resources
SSR Mining Inc., together with its subsidiaries, engages in the operation, acquisition, exploration, and development of precious metal resource properties in the United States, Türkiye, Canada, and Argentina. The company explores for gold doré, copper, silver, lead, and zinc deposits. Its mines include the Çöpler, located in Erzincan province, Turkey; the Marigold, located in Nevada, the United States; the Seabee, located in Saskatchewan, Canada; and the Puna, located in Jujuy province, Argentina. The company was formerly known as Silver Standard Resources Inc. and changed its name to SSR Mining Inc. in August 2017. SSR Mining Inc. was incorporated in 1946 and is based in Denver, Colorado.
About Glencore
Glencore plc engages in the production, refinement, processing, storage, transport, and marketing of metals and minerals, and energy products in the Americas, Europe, Asia, Africa, and Oceania. It operates through two segments: Marketing Activities and Industrial Activities. The company engages in production and marketing copper, cobalt, lead, nickel, zinc, chrome ore, ferrochrome, vanadium, aluminum, alumina, and iron ore; and coal, crude oil, refined products, and natural gas, as well as oil exploration/production and refining/distribution. It also operates marketing and distribution of physical commodities sourced from third party producers and company’s production to industrial consumers, including the battery, electronic, construction, automotive, steel, energy, and oil industries. In addition, the company provides financing, logistics, and other services to producers and consumers of commodities. Glencore plc was founded in 1974 and is headquartered in Baar, Switzerland.
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