Analyzing Glencore (OTCMKTS:GLNCY) and Entree Gold (OTCMKTS:ERLFF)

Entree Gold (OTCMKTS:ERLFF) and Glencore (OTCMKTS:GLNCY) are both basic materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, risk, valuation, dividends and profitability.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Entree Gold and Glencore, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Entree Gold	0	1	0	0	2.00
Glencore	0	2	2	2	3.00

Glencore has a consensus target price of $9.30, suggesting a potential downside of 0.85%. Given Glencore’s stronger consensus rating and higher probable upside, analysts plainly believe Glencore is more favorable than Entree Gold.

Valuation and Earnings

This table compares Entree Gold and Glencore”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Entree Gold	N/A	N/A	-$14.32 million	($0.09)	-19.04
Glencore	$230.94 billion	0.24	-$1.63 billion	N/A	N/A

Entree Gold has higher earnings, but lower revenue than Glencore.

Profitability

This table compares Entree Gold and Glencore’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Entree Gold	N/A	N/A	-229.63%
Glencore	N/A	N/A	N/A

Insider & Institutional Ownership

0.1% of Glencore shares are held by institutional investors. 3.4% of Entree Gold shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk and Volatility

Entree Gold has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500. Comparatively, Glencore has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500.

Summary

Glencore beats Entree Gold on 8 of the 10 factors compared between the two stocks.

About Entree Gold

Entrée Resources Ltd., a mining company, engages in the exploration, evaluation, and development of mineral property interests in Canada. Its principal asset is the Entrée/Oyu Tolgoi joint venture property comprising Hugo North Extension copper-gold deposit and the Heruga copper-gold-molybdenum deposit located in Mongolia. The company was formerly known as Entrée Gold Inc. and changed its name to Entrée Resources Ltd. in May 2017. Entrée Resources Ltd. was incorporated in 1995 and is headquartered in Vancouver, Canada.

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.