Financial Contrast: Glencore (OTCMKTS:GLNCY) & Impala Platinum (OTCMKTS:IMPUY)

Glencore (OTCMKTS:GLNCY) and Impala Platinum (OTCMKTS:IMPUY) are both large-cap basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, risk and analyst recommendations.

Institutional and Insider Ownership

0.1% of Glencore shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Glencore and Impala Platinum, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Glencore	0	3	6	2	2.91
Impala Platinum	0	1	2	0	2.67

Glencore currently has a consensus price target of $9.30, suggesting a potential downside of 40.15%. Impala Platinum has a consensus price target of $23.00, suggesting a potential upside of 95.41%. Given Impala Platinum’s higher possible upside, analysts plainly believe Impala Platinum is more favorable than Glencore.

Dividends

Glencore pays an annual dividend of $0.27 per share and has a dividend yield of 1.7%. Impala Platinum pays an annual dividend of $0.36 per share and has a dividend yield of 3.1%.

Valuation & Earnings

This table compares Glencore and Impala Platinum”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Glencore	$247.54 billion	0.37	$363.00 million	N/A	N/A
Impala Platinum	$4.71 billion	2.24	$41.85 million	N/A	N/A

Glencore has higher revenue and earnings than Impala Platinum.

Profitability

This table compares Glencore and Impala Platinum’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Glencore	N/A	N/A	N/A
Impala Platinum	N/A	N/A	N/A

Risk and Volatility

Glencore has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500. Comparatively, Impala Platinum has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500.

Summary

Glencore beats Impala Platinum on 6 of the 10 factors compared between the two stocks.

About Glencore

Glencore plc engages in the production, refinement, processing, storage, transport, and marketing of metals and minerals, and energy products in the Americas, Europe, Asia, Africa, and Oceania. It operates through two segments: Marketing Activities and Industrial Activities. The company engages in production and marketing copper, cobalt, lead, nickel, zinc, chrome ore, ferrochrome, vanadium, aluminum, alumina, and iron ore; and coal, crude oil, refined products, and natural gas, as well as oil exploration/production and refining/distribution. It also operates marketing and distribution of physical commodities sourced from third party producers and company’s production to industrial consumers, including the battery, electronic, construction, automotive, steel, energy, and oil industries. In addition, the company provides financing, logistics, and other services to producers and consumers of commodities. Glencore plc was founded in 1974 and is headquartered in Baar, Switzerland.

About Impala Platinum

Impala Platinum Holdings Limited engages in the mining, processing, concentrating, refining, and sale of platinum group metals (PGMs) and associated base metals. The company produces platinum, palladium, rhodium, nickel, and by-products, as well as ruthenium, iridium, and gold. It has operations on the PGM-bearing orebodies, including the Bushveld Complex located in South Africa; and the Great Dyke situated in Zimbabwe, as well as the Canadian Shield. The company markets and sells its products in South Africa, Japan, China, the United States, and Europe. Impala Platinum Holdings Limited was incorporated in 1957 and is based in Sandton, South Africa.