NexGen Energy (NYSE:NXE) and South32 (OTCMKTS:SOUHY) Financial Analysis

South32 (OTCMKTS:SOUHY) and NexGen Energy (NYSE:NXE) are both basic materials companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, analyst recommendations, valuation, profitability, earnings and dividends.

Profitability

This table compares South32 and NexGen Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
South32	N/A	N/A	N/A
NexGen Energy	N/A	-13.11%	-8.91%

Valuation & Earnings

This table compares South32 and NexGen Energy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
South32	$5.78 billion	2.46	$213.00 million	N/A	N/A
NexGen Energy	N/A	N/A	-$221.63 million	($0.49)	-19.11

South32 has higher revenue and earnings than NexGen Energy.

Risk & Volatility

South32 has a beta of 0.78, meaning that its stock price is 22% less volatile than the S&P 500. Comparatively, NexGen Energy has a beta of 1.39, meaning that its stock price is 39% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for South32 and NexGen Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
South32	0	1	1	1	3.00
NexGen Energy	1	1	4	0	2.50

Institutional & Insider Ownership

0.1% of South32 shares are owned by institutional investors. Comparatively, 42.4% of NexGen Energy shares are owned by institutional investors. 0.2% of South32 shares are owned by insiders. Comparatively, 5.6% of NexGen Energy shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

South32 beats NexGen Energy on 6 of the 10 factors compared between the two stocks.

About South32

South32 Limited operates as a diversified metals and mining company in Australia, India, China, Japan, the Middle East, Mozambique, the Netherlands, Brazil, Russia, South Africa, South Korea, the United States, and internationally. The company operates through Worsley Alumina, Brazil Alumina, Brazil Aluminium, Hillside Aluminium, Mozal Aluminium, Sierra Gorda, Cannington, Hermosa, Cerro Matoso, Illawarra Metallurgical Coal, Australia Manganese, and South Africa Manganese segments. It has a portfolio of assets producing bauxite, alumina, aluminum, copper, silver, lead, zinc, nickel, metallurgical coal, manganese, ferronickel, and other base metals. The company also exports its products. South32 Limited was incorporated in 2000 and is headquartered in Perth, Australia.

About NexGen Energy

NexGen Energy Ltd., an exploration and development stage company, engages in the acquisition, exploration, and evaluation and development of uranium properties in Canada. It holds a 100% interest in the Rook I project that consists of 32 contiguous mineral claims totaling an area of 35,065 hectares located in the southwestern Athabasca Basin of Saskatchewan. The company is headquartered in Vancouver, Canada.