Comparing Ferroglobe (NASDAQ:GSM) & Skeena Resources (NYSE:SKE)

Ferroglobe (NASDAQ:GSM) and Skeena Resources (NYSE:SKE) are both basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, dividends, valuation and analyst recommendations.

Valuation and Earnings

This table compares Ferroglobe and Skeena Resources”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ferroglobe	$1.37 billion	0.51	$23.54 million	($0.74)	-5.03
Skeena Resources	N/A	N/A	-$110.89 million	($1.09)	-16.04

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

Volatility and Risk

Ferroglobe has a beta of 1.83, indicating that its share price is 83% more volatile than the S&P 500. Comparatively, Skeena Resources has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Ferroglobe and Skeena Resources, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ferroglobe	1	1	1	0	2.00
Skeena Resources	1	0	4	1	2.83

Ferroglobe presently has a consensus price target of $6.00, indicating a potential upside of 61.29%. Given Ferroglobe’s higher possible upside, equities analysts clearly believe Ferroglobe is more favorable than Skeena Resources.

Insider & Institutional Ownership

89.6% of Ferroglobe shares are owned by institutional investors. Comparatively, 45.2% of Skeena Resources shares are owned by institutional investors. 13.1% of Ferroglobe shares are owned by insiders. Comparatively, 2.0% of Skeena Resources shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Ferroglobe and Skeena Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ferroglobe	-6.99%	-2.85%	-1.51%
Skeena Resources	N/A	-60.92%	-20.25%

Summary

Ferroglobe beats Skeena Resources on 10 of the 14 factors compared between the two stocks.

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.

About Skeena Resources

Skeena Resources Limited explores for and develops mineral properties in Canada. The company explores for gold, silver, copper, and other precious metal deposits. It holds 100% interests in the Snip gold mine comprising one mining lease and nine mineral tenures that covers an area of approximately 4,724 hectares; and the Eskay Creek gold mine that consists of eight mineral leases, two surface leases, and various unpatented mining claims comprising 7,666 hectares located in British Columbia, Canada. The company was formerly known as Prolific Resources Ltd. and changed its name to Skeena Resources Limited in June 1990. Skeena Resources Limited was incorporated in 1979 and is based in Vancouver, Canada.