Luxfer Holdings PLC (LXFR) vs. Ferroglobe PLC (GSM) Financial Analysis
Luxfer Holdings PLC (NYSE: LXFR) and Ferroglobe PLC (NASDAQ:GSM) are both industrial products companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, institutional ownership, earnings, profitability and risk.
Valuation and Earnings
This table compares Luxfer Holdings PLC and Ferroglobe PLC’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Luxfer Holdings PLC||$405.00 million||0.79||$48.00 million||$0.58||20.43|
|Ferroglobe PLC||$1.53 billion||1.44||$32.76 million||($0.69)||-18.61|
Luxfer Holdings PLC has higher revenue, but lower earnings than Ferroglobe PLC. Ferroglobe PLC is trading at a lower price-to-earnings ratio than Luxfer Holdings PLC, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
84.0% of Luxfer Holdings PLC shares are held by institutional investors. Comparatively, 40.2% of Ferroglobe PLC shares are held by institutional investors. 13.1% of Ferroglobe PLC shares are held 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.
Risk & Volatility
Luxfer Holdings PLC has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500. Comparatively, Ferroglobe PLC has a beta of 1.76, indicating that its stock price is 76% more volatile than the S&P 500.
This table compares Luxfer Holdings PLC and Ferroglobe PLC’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Luxfer Holdings PLC||3.85%||14.70%||5.12%|
This is a breakdown of current ratings and price targets for Luxfer Holdings PLC and Ferroglobe PLC, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Luxfer Holdings PLC||0||0||0||0||N/A|
Ferroglobe PLC has a consensus price target of $12.85, suggesting a potential upside of 0.08%. Given Ferroglobe PLC’s higher possible upside, analysts clearly believe Ferroglobe PLC is more favorable than Luxfer Holdings PLC.
Luxfer Holdings PLC pays an annual dividend of $0.48 per share and has a dividend yield of 4.1%. Ferroglobe PLC does not pay a dividend. Luxfer Holdings PLC pays out 82.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Luxfer Holdings PLC Company Profile
Luxfer Holdings PLC is a holding company. The Company is a materials technology company specializing in the design, manufacture and supply of materials, components and gas-containment devices for healthcare, environmental, protection and specialty end-markets. It operates through two divisions: Elektron and Gas Cylinders. Its Elektron Division focuses on specialty materials based primarily on magnesium, zirconium and rare earths. It sells its products through two brands, Magnesium Elektron and MEL Chemicals. Its Gas Cylinders Division manufactures and markets specialized products using aluminum, magnesium, carbon composites and steel. It sells its products through two brands, Luxfer Gas Cylinders and Superform. Its customers include both end users of its products and manufacturers that incorporate its products into finished goods. As of December 31, 2016, it had operated 20 manufacturing plants in the United States, the United Kingdom, Canada, France, the Czech Republic and China.
Ferroglobe PLC Company Profile
Ferroglobe PLC, formerly VeloNewco Limited, is engaged in silicon and specialty metals industry. The Company produces silicon metal and silicon- and manganese-based alloy, which serves customers in the chemical, aluminum, solar, steel and ductile iron foundry industries. It operates through two segments: Electrometallurgy and Energy. It Electrometallurgy segment includes its coal and quartz mining operations and its silicon metal and ferroalloy production, whereas the Energy segment consists of its hydroelectric power operations. It currently operates approximately 20 production smelting facilities in the field of electrometallurgy: approximately five in Spain, over five in the United States of America, over six in France, over three in South Africa, one in Venezuela, one in Poland, one in Canada, one in Argentina and one in China. It diversifies its production base across approximately five continents, such as Africa, Asia, Europe, North America and South America.
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