Analyzing Largo (NYSE:LGO) and Sisecam Resources (NYSE:SIRE)

Largo (NYSE:LGO – Get Rating) and Sisecam Resources (NYSE:SIRE – Get Rating) are both small-cap oils/energy companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, earnings, dividends, institutional ownership, profitability, analyst recommendations and risk.

Insider & Institutional Ownership

64.3% of Largo shares are owned by institutional investors. Comparatively, 5.7% of Sisecam Resources shares are owned by institutional investors. 0.3% of Largo shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Largo and Sisecam Resources’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Largo	$198.28 million	2.02	$22.57 million	$0.22	28.45
Sisecam Resources	$720.10 million	0.70	$24.40 million	$3.13	8.15

Sisecam Resources has higher revenue and earnings than Largo. Sisecam Resources is trading at a lower price-to-earnings ratio than Largo, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Largo has a beta of 2.06, suggesting that its stock price is 106% more volatile than the S&P 500. Comparatively, Sisecam Resources has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500.

Profitability

This table compares Largo and Sisecam Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Largo	6.16%	6.11%	5.05%
Sisecam Resources	8.79%	17.56%	10.55%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Largo and Sisecam Resources, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Largo	0	1	1	0	2.50
Sisecam Resources	0	0	0	0	N/A

Largo presently has a consensus price target of $16.33, indicating a potential upside of 160.92%. Given Largo’s higher possible upside, analysts plainly believe Largo is more favorable than Sisecam Resources.

Summary

Largo beats Sisecam Resources on 7 of the 13 factors compared between the two stocks.

About Largo

(Get Rating)

Largo Inc. engages in the exploration and production of vanadium at the Maracas Menchen Mine located in Brazil. The firm mines and sells vanadium pentoxide flake, high purity vanadium pentoxide flake, and high purity vanadium pentoxide powder. It also focuses on the advancement of renewable energy storage solutions through its vanadium redox flow battery technology. The company was founded on April 18, 1988 and is headquartered in Toronto, Canada.

About Sisecam Resources

(Get Rating)

Sisecam Resources LP engages in the production and sale of natural soda ash. The company was founded on April 22, 2013 and is headquartered in Atlanta, GA.