NioCorp Developments (NASDAQ:NB – Get Free Report) and Ferroglobe (NASDAQ:GSM – Get Free Report) are both small-cap basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, risk and valuation.
Institutional & Insider Ownership
4.0% of NioCorp Developments shares are held by institutional investors. Comparatively, 89.6% of Ferroglobe shares are held by institutional investors. 19.1% of NioCorp Developments shares are held by insiders. Comparatively, 13.1% of Ferroglobe shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Profitability
This table compares NioCorp Developments and Ferroglobe’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NioCorp Developments | N/A | -1,273.17% | -140.97% |
| Ferroglobe | 0.32% | 6.36% | 3.43% |
Volatility and Risk
Earnings & Valuation
This table compares NioCorp Developments and Ferroglobe”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NioCorp Developments | N/A | N/A | -$11.44 million | ($0.78) | -3.06 |
| Ferroglobe | $1.56 billion | 0.45 | $82.66 million | ($0.33) | -11.52 |
Ferroglobe has higher revenue and earnings than NioCorp Developments. Ferroglobe is trading at a lower price-to-earnings ratio than NioCorp Developments, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for NioCorp Developments and Ferroglobe, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NioCorp Developments | 0 | 0 | 2 | 0 | 3.00 |
| Ferroglobe | 0 | 1 | 0 | 0 | 2.00 |
NioCorp Developments currently has a consensus target price of $4.13, suggesting a potential upside of 72.59%. Given NioCorp Developments’ stronger consensus rating and higher possible upside, analysts clearly believe NioCorp Developments is more favorable than Ferroglobe.
Summary
Ferroglobe beats NioCorp Developments on 9 of the 13 factors compared between the two stocks.
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.
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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