FORTESCUE METAL/S (OTCMKTS: SOUHY) and SOUTH32 Ltd/S (OTCMKTS:SOUHY) are both basic materials companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, earnings, risk, analyst recommendations, institutional ownership, dividends and valuation.

Institutional and Insider Ownership

0.1% of FORTESCUE METAL/S shares are owned by institutional investors. Comparatively, 0.3% of SOUTH32 Ltd/S shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares FORTESCUE METAL/S and SOUTH32 Ltd/S’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FORTESCUE METAL/S N/A N/A N/A
SOUTH32 Ltd/S N/A N/A N/A

Risk and Volatility

FORTESCUE METAL/S has a beta of 2.01, meaning that its stock price is 101% more volatile than the S&P 500. Comparatively, SOUTH32 Ltd/S has a beta of 1.6, meaning that its stock price is 60% more volatile than the S&P 500.

Dividends

FORTESCUE METAL/S pays an annual dividend of $0.31 per share and has a dividend yield of 6.2%. SOUTH32 Ltd/S pays an annual dividend of $0.63 per share and has a dividend yield of 5.0%. SOUTH32 Ltd/S pays out 58.3% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for FORTESCUE METAL/S and SOUTH32 Ltd/S, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FORTESCUE METAL/S 0 0 0 0 N/A
SOUTH32 Ltd/S 1 1 2 0 2.25

Earnings & Valuation

This table compares FORTESCUE METAL/S and SOUTH32 Ltd/S’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
FORTESCUE METAL/S $8.45 billion 0.92 $2.09 billion N/A N/A
SOUTH32 Ltd/S $6.95 billion 1.87 $1.23 billion $1.08 11.78

FORTESCUE METAL/S has higher revenue and earnings than SOUTH32 Ltd/S.

Summary

FORTESCUE METAL/S beats SOUTH32 Ltd/S on 5 of the 8 factors compared between the two stocks.

About FORTESCUE METAL/S

Fortescue Metals Group Limited engages in the exploration, development, production, processing, and sale of iron ore in Australia, China, and internationally. The company owns and operates the Chichester Hub that includes the Cloudbreak and Christmas Creek mines located in the Chichester ranges; and the Solomon Hub comprising the Firetail and Kings Valley mines located in the Hamersley ranges of Pilbara, Western Australia. It is also developing the Eliwana mine situated in the Pilbara region of Western Australia. The company was founded in 2003 and is headquartered in East Perth, Australia.

About SOUTH32 Ltd/S

South32 Limited operates as a diversified metals and mining company primarily in Australia, Southern Africa, and South America. The company has a portfolio of assets producing alumina, aluminum, bauxite, energy and metallurgical coal, manganese ore and alloy, laterite ferronickel, silver, lead, and zinc. It also exports its products. The company was formerly known as BHP Coal Holdings Pty Limited and changed its name to South32 Limited in March 2015. South32 Limited was incorporated in 2000 and is headquartered in Perth, Australia.

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