Analyzing Western Copper and Gold (NYSE:WRN) and Ferroglobe (NASDAQ:GSM) - Defense World

2022-08-13 06:10:59 By : Mr. James Lee

Posted by admin on Aug 4th, 2022

Ferroglobe (NASDAQ:GSM – Get Rating) and Western Copper and Gold (NYSE:WRN – Get Rating) are both small-cap basic materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, profitability, risk, analyst recommendations, institutional ownership, dividends and earnings.

31.2% of Ferroglobe shares are owned by institutional investors. Comparatively, 12.1% of Western Copper and Gold shares are owned by institutional investors. 13.1% of Ferroglobe shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

This table compares Ferroglobe and Western Copper and Gold’s revenue, earnings per share and valuation.

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

Ferroglobe has a beta of 2.33, indicating that its stock price is 133% more volatile than the S&P 500. Comparatively, Western Copper and Gold has a beta of 2.26, indicating that its stock price is 126% more volatile than the S&P 500.

This table compares Ferroglobe and Western Copper and Gold’s net margins, return on equity and return on assets.

This is a breakdown of recent ratings and recommmendations for Ferroglobe and Western Copper and Gold, as provided by MarketBeat.

Western Copper and Gold has a consensus target price of $4.50, indicating a potential upside of 230.88%. Given Western Copper and Gold’s higher probable upside, analysts plainly believe Western Copper and Gold is more favorable than Ferroglobe.

Ferroglobe beats Western Copper and Gold on 9 of the 11 factors compared between the two stocks.

Ferroglobe PLC operates in the silicon and specialty metals industry 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, as well as silicon metal for primary and secondary aluminum producers; 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. The company also 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. In addition, it provides silica fume, a by-product of the electrometallurgical process of silicon metal and ferrosilicon. Further, the company operates quartz mines in Spain, South Africa, the United States, and Canada; and low-ash metallurgical coal mines in the United States, as well as holds interests in hydroelectric power plant in France. It serves silicone chemical, aluminum, and steel manufacturers; auto companies and their suppliers; ductile iron foundries; manufacturers of photovoltaic solar cells and computer chips; and concrete producers. The company 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. Ferroglobe PLC is a subsidiary of Grupo Villar Mir, S.A.U.

Western Copper and Gold Corporation, an exploration stage company, engages in the exploration and development of mineral properties in Canada. The company explores for gold, copper, silver, and molybdenum deposits. Its principal property is the Casino mineral property that comprise 1,136 full and partial quartz claims, and 55 placer claims located in Yukon, Canada. The company was formerly known as Western Copper Corporation and changed its name to Western Copper and Gold Corporation in October 2011. Western Copper and Gold Corporation was incorporated in 2006 and is headquartered in Vancouver, Canada.

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