Critical Survey: PT United Tractors Tbk (OTCMKTS:PUTKY) versus SouthGobi Resources (OTCMKTS:SGQRF)

PT United Tractors Tbk (OTCMKTS:PUTKY) and SouthGobi Resources (OTCMKTS:SGQRF) are both materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, risk and profitability.

Analyst Recommendations

This is a summary of recent recommendations and price targets for PT United Tractors Tbk and SouthGobi Resources, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PT United Tractors Tbk	1	0	0	0	1.00
SouthGobi Resources	0	0	0	0	0.00

Profitability

This table compares PT United Tractors Tbk and SouthGobi Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PT United Tractors Tbk	N/A	N/A	N/A
SouthGobi Resources	-18.97%	N/A	-34.79%

Institutional and Insider Ownership

0.0% of PT United Tractors Tbk shares are held by institutional investors. 0.1% of SouthGobi Resources shares are held by 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.

Valuation and Earnings

This table compares PT United Tractors Tbk and SouthGobi Resources”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PT United Tractors Tbk	N/A	N/A	N/A	$33,399.93	0.00
SouthGobi Resources	$598.82 million	0.17	-$168.77 million	($0.45)	-0.62

PT United Tractors Tbk has higher earnings, but lower revenue than SouthGobi Resources. SouthGobi Resources is trading at a lower price-to-earnings ratio than PT United Tractors Tbk, indicating that it is currently the more affordable of the two stocks.

Summary

PT United Tractors Tbk beats SouthGobi Resources on 6 of the 8 factors compared between the two stocks.

About PT United Tractors Tbk

PT United Tractors Tbk, together with its subsidiaries, sells and rents heavy equipment in Indonesia. The company operates through six segments: Construction Machinery, Mining Contracting, Coal Mining, Gold and Other Mineral Mining, Construction Industry, and Energy. It also distributes heavy equipment, trucks, cranes, and busses under the Komatsu, UD Trucks, Scania, Bomag, Tadano, and United Tractors names to mining, agriculture, constructions, forestry, as well as material handling and transportation. In addition, it sells and leases tractors, generators, forklifts, and mini excavators, as well as sells commodity parts. Further, the company offers mining services that supports coal companies, such as mining design and implementation, initial assessment and feasibility study, mining infrastructure and facilities development, land removal and waste management, production and transportation of mining materials, expansion of mine/ facility, reclamation and re-vegetation, and shipping and marketing, as well as owns interests in various coal mine concessions; and provides technical and construction services for building, civil, and maritime work. Additionally, it engages in the engineering, planning, assembling, and manufacturing components of machinery, tools, parts, and heavy equipment; provision of vessel construction and related repair services; provision of vessel charter and shipping; operating power plants; fishery business; exploration, mining, and mineral processing of gold and silver; and remanufacturing of heavy equipment components. The company was founded in 1972 and is headquartered in Jakarta Timur, Indonesia. PT United Tractors Tbk is a subsidiary of PT Astra International Tbk.

About SouthGobi Resources

SouthGobi Resources Ltd., together with its subsidiaries, operates as an integrated coal mining, development, and exploration company in Mongolia and Hong Kong. The company primarily explores for coking and thermal coal. Its flagship project is the Ovoot Tolgoi open pit coal mine located in the Umnugobi Aimag of Mongolia. The company was formerly known as SouthGobi Energy Resources Ltd. and changed its name to SouthGobi Resources Ltd. in May 2010. SouthGobi Resources Ltd. is based in Kowloon, Hong Kong.