Vedanta (NYSE:VEDL) versus Cerro Grande Mining (OTCMKTS:CEGMF) Financial Review

Vedanta (NYSE:VEDL) and Cerro Grande Mining (OTCMKTS:CEGMF) are both basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, risk, earnings, valuation and analyst recommendations.

Valuation & Earnings

This table compares Vedanta and Cerro Grande Mining’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Vedanta $11.91 billion 1.29 $1.54 billion $2.72 6.07
Cerro Grande Mining N/A N/A -$1.73 million N/A N/A

Vedanta has higher revenue and earnings than Cerro Grande Mining.

Risk and Volatility

Vedanta has a beta of 1.7, indicating that its share price is 70% more volatile than the S&P 500. Comparatively, Cerro Grande Mining has a beta of -3.38, indicating that its share price is 438% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for Vedanta and Cerro Grande Mining, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vedanta 0 0 0 0 N/A
Cerro Grande Mining 0 0 0 0 N/A

Profitability

This table compares Vedanta and Cerro Grande Mining’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Vedanta 17.13% 48.89% 20.81%
Cerro Grande Mining N/A N/A -121.79%

Institutional & Insider Ownership

3.8% of Vedanta shares are held by institutional investors. 62.9% of Vedanta shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Vedanta beats Cerro Grande Mining on 8 of the 8 factors compared between the two stocks.

About Vedanta

Vedanta Ltd. is a natural resource company, which engages in the exploration, extraction, and processing of minerals, oil, and gas properties. It operates through the following segments: Copper, Aluminum, Iron Ore, Power, and Oil & Gas. The Copper segment focuses in custom smelting and also include a copper smelter, a refinery, a phosphoric acid plant, a sulphuric acid plant, a copper rod plant, and three captive power plants. The Aluminum segment comprises refinery and a captive power plant at Lanjigarh and a smelter, a thermal coal based captive power facility at Jharsuguda both situated in the State of Odisha in India. The Iron Ore segment explores, mines, and processes iron ore, pig iron, and metallurgical coke. The Power segment consists 600 MW thermal coal-based commercial power facility at Jharsuguda in the State of Odisha in Eastern India. The Oil and Gas segment involves in the exploration and development and production of oil and gas. The company was founded by Dwarka Prasad Agarwal on June 25, 1965 and is headquartered in Mumbai, India.

About Cerro Grande Mining

Cerro Grande Mining Corp. is an exploration and development company, which engages in the acquisition, exploration, and development of mineral properties in Chile. The firm explores for gold, silver, copper, and limestone deposits. It holds interest in Tordillo, Catedral and Pimenton projects. The company was founded by Stephen W. Houghton and John C. Duncan in 1990 and is headquartered in Providencia, Chile.

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