New Era Helium (NASDAQ:NEHC – Get Free Report) and Fortescue (OTCMKTS:FSUGY – Get Free Report) are both basic materials companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, institutional ownership, dividends, valuation, analyst recommendations, profitability and risk.
Profitability
This table compares New Era Helium and Fortescue’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| New Era Helium | N/A | N/A | N/A |
| Fortescue | N/A | N/A | N/A |
Volatility & Risk
New Era Helium has a beta of 0.19, suggesting that its share price is 81% less volatile than the S&P 500. Comparatively, Fortescue has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| New Era Helium | 0 | 0 | 0 | 0 | 0.00 |
| Fortescue | 1 | 2 | 0 | 1 | 2.25 |
Institutional and Insider Ownership
21.9% of New Era Helium shares are held by institutional investors. 6.3% of New Era Helium shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares New Era Helium and Fortescue”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| New Era Helium | $530,024.00 | 109.64 | -$13.78 million | ($0.41) | -9.79 |
| Fortescue | $15.54 billion | 2.58 | $3.37 billion | N/A | N/A |
Fortescue has higher revenue and earnings than New Era Helium.
Summary
Fortescue beats New Era Helium on 5 of the 8 factors compared between the two stocks.
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.
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.
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