Comparing Glencore (OTCMKTS:GLNCY) and Fortescue (OTCMKTS:FSUGY)

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

Analyst Recommendations

This is a summary of recent ratings and price targets for Glencore and Fortescue, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Glencore	0	1	2	4	3.43
Fortescue	1	2	0	1	2.25

Glencore currently has a consensus target price of $9.30, indicating a potential downside of 2.00%. Given Glencore’s stronger consensus rating and higher possible upside, equities analysts clearly believe Glencore is more favorable than Fortescue.

Risk and Volatility

Glencore has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500. Comparatively, Fortescue has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Glencore	$230.94 billion	0.24	-$1.63 billion	N/A	N/A
Fortescue	$15.54 billion	2.52	$3.37 billion	N/A	N/A

Fortescue has lower revenue, but higher earnings than Glencore.

Profitability

This table compares Glencore and Fortescue’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
Fortescue	N/A	N/A	N/A

Dividends

Glencore pays an annual dividend of $0.17 per share and has a dividend yield of 1.8%. Fortescue pays an annual dividend of $1.53 per share and has a dividend yield of 6.0%.

Insider and Institutional Ownership

0.1% of Glencore shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Glencore beats Fortescue on 6 of the 9 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 Fortescue

Fortescue Ltd engages in the exploration, development, production, processing, and sale of iron ore in Australia, China, and internationally. It explores for copper, gold, and lithium deposits; and rare earth elements. The company provides port towage services; owns and operates rail and port facilities; and focuses on producing green energy and green hydrogen, including derivatives comprising green ammonia. The company was formerly known as Fortescue Metals Group Limited and changed its name to Fortescue Ltd in November 2023. Fortescue Ltd was incorporated in 1983 and is headquartered in East Perth, Australia.