Contrasting New Era Helium (NASDAQ:NEHC) & South32 (OTCMKTS:SOUHY)

South32 (OTCMKTS:SOUHY) and New Era Helium (NASDAQ:NEHC) are both basic materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, valuation, analyst recommendations, profitability, earnings, dividends and institutional ownership.

Valuation & Earnings

This table compares South32 and New Era Helium”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
South32	$5.78 billion	2.44	$213.00 million	N/A	N/A
New Era Helium	$530,024.00	129.71	-$13.78 million	($0.41)	-11.59

South32 has higher revenue and earnings than New Era Helium.

Profitability

This table compares South32 and New Era Helium’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
New Era Helium	N/A	N/A	N/A

Analyst Recommendations

This is a summary of current ratings for South32 and New Era Helium, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
South32	0	6	0	1	2.29
New Era Helium	0	0	0	0	0.00

Institutional and Insider Ownership

0.1% of South32 shares are held by institutional investors. Comparatively, 21.9% of New Era Helium shares are held by institutional investors. 0.2% of South32 shares are held by company insiders. Comparatively, 6.3% of New Era Helium shares are held by company insiders. 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.

Risk & Volatility

South32 has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500. Comparatively, New Era Helium has a beta of 0.19, suggesting that its stock price is 81% less volatile than the S&P 500.

Summary

South32 beats New Era Helium on 5 of the 8 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 New Era Helium

New Era Helium, Inc. is an exploration and production company that sources helium produced in association with the production of natural gas reserves in North America. The company was founded in 2023 and is headquartered in Midland, TX.