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

Analyst Ratings

This is a summary of current recommendations and price targets for SOUTH32 Ltd/S and Vedanta Resources, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SOUTH32 Ltd/S 1 1 2 0 2.25
Vedanta Resources 0 1 0 0 2.00

Risk & Volatility

SOUTH32 Ltd/S has a beta of 1.6, indicating that its stock price is 60% more volatile than the S&P 500. Comparatively, Vedanta Resources has a beta of 2.69, indicating that its stock price is 169% more volatile than the S&P 500.

Valuation & Earnings

This table compares SOUTH32 Ltd/S and Vedanta Resources’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SOUTH32 Ltd/S $6.95 billion 2.04 $1.23 billion $1.08 12.88
Vedanta Resources $11.52 billion 0.25 -$22.70 million N/A N/A

SOUTH32 Ltd/S has higher earnings, but lower revenue than Vedanta Resources.

Profitability

This table compares SOUTH32 Ltd/S and Vedanta Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SOUTH32 Ltd/S N/A N/A N/A
Vedanta Resources N/A N/A N/A

Dividends

SOUTH32 Ltd/S pays an annual dividend of $0.57 per share and has a dividend yield of 4.1%. Vedanta Resources pays an annual dividend of $0.24 per share and has a dividend yield of 2.3%. SOUTH32 Ltd/S pays out 52.8% of its earnings in the form of a dividend.

Institutional & Insider Ownership

0.3% of SOUTH32 Ltd/S shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

SOUTH32 Ltd/S beats Vedanta Resources on 6 of the 9 factors compared between the two stocks.

SOUTH32 Ltd/S Company Profile

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.

Vedanta Resources Company Profile

Vedanta Resources plc operates as a diversified natural resources company in India, Zambia, South Africa, Namibia, the United Arab Emirates, Ireland, Australia, and Liberia. It primarily produces zinc, lead, silver, copper, iron ore, and aluminum deposits. The company also explores for, extracts, and processes minerals, as well as oil and gas. In addition, it operates as a power producer with an installed capacity of 8.4 gigawatts of thermal based power generation and 274 megawatts of wind power generation. Further, the company engages in the port operations business in India; mining, smelting, and refining copper, aluminum, zinc, and iron ore; and gold and silver processing activity. Additionally, it provides accommodation and catering services; and leases medical equipment, as well as offers related building and conducting services. The company was founded in 1976 and is headquartered in London, the United Kingdom. Vedanta Resources plc is a subsidiary of Volcan Investments Limited.

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