U.S. Silica Holdings (SLCA) versus Ferroglobe PLC (NASDAQ:GSM) Critical Comparison
U.S. Silica Holdings (NYSE: SLCA) and Ferroglobe PLC (NASDAQ:GSM) are both mid-cap basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, earnings, profitabiliy, institutional ownership, analyst recommendations, valuation and risk.
Valuation and Earnings
This table compares U.S. Silica Holdings and Ferroglobe PLC’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|U.S. Silica Holdings||$681.91 million||3.64||$56.62 million||($0.42)||-72.86|
|Ferroglobe PLC||$1.53 billion||1.40||$32.76 million||($0.69)||-18.06|
U.S. Silica Holdings has higher revenue, but lower earnings than Ferroglobe PLC. U.S. Silica Holdings is trading at a lower price-to-earnings ratio than Ferroglobe PLC, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
U.S. Silica Holdings has a beta of 2.37, suggesting that its share price is 137% more volatile than the S&P 500. Comparatively, Ferroglobe PLC has a beta of 1.75, suggesting that its share price is 75% more volatile than the S&P 500.
This is a breakdown of current recommendations and price targets for U.S. Silica Holdings and Ferroglobe PLC, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|U.S. Silica Holdings||1||2||17||0||2.80|
U.S. Silica Holdings presently has a consensus target price of $56.29, indicating a potential upside of 83.95%. Ferroglobe PLC has a consensus target price of $12.85, indicating a potential upside of 3.13%. Given U.S. Silica Holdings’ higher possible upside, analysts clearly believe U.S. Silica Holdings is more favorable than Ferroglobe PLC.
This table compares U.S. Silica Holdings and Ferroglobe PLC’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|U.S. Silica Holdings||-4.07%||-1.94%||-1.07%|
Insider & Institutional Ownership
40.0% of Ferroglobe PLC shares are owned by institutional investors. 1.0% of U.S. Silica Holdings shares are owned by insiders. Comparatively, 13.1% of Ferroglobe PLC shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
U.S. Silica Holdings pays an annual dividend of $0.25 per share and has a dividend yield of 0.8%. Ferroglobe PLC does not pay a dividend. U.S. Silica Holdings pays out -59.5% of its earnings in the form of a dividend.
U.S. Silica Holdings beats Ferroglobe PLC on 11 of the 15 factors compared between the two stocks.
U.S. Silica Holdings Company Profile
U.S. Silica Holdings, Inc. is a domestic producer of commercial silica, a specialized mineral that is an input into a range of end markets. The Company operates in two segments: Oil & Gas Proppants, and Industrial & Specialty Products. In the Oil & Gas Proppants segment, it serves the oil and gas recovery market providing fracturing sand, or frac sand, which is pumped down oil and natural gas wells to prop open rock fissures and manage the flow rate of natural gas and oil from the wells. As of December 31, 2016, the Industrial & Specialty Products segment consisted of over 215 products and materials, which are used in a range of industries, including container glass, fiberglass, specialty glass, flat glass, building products, fillers and extenders, foundry products, chemicals, recreation products and filtration products. It produces and sells a range of commercial silica products, including whole grain and ground products, as well as other industrial mineral products.
Ferroglobe PLC Company Profile
Ferroglobe PLC, formerly VeloNewco Limited, is engaged in silicon and specialty metals industry. The Company produces silicon metal and silicon- and manganese-based alloy, which serves customers in the chemical, aluminum, solar, steel and ductile iron foundry industries. It operates through two segments: Electrometallurgy and Energy. It Electrometallurgy segment includes its coal and quartz mining operations and its silicon metal and ferroalloy production, whereas the Energy segment consists of its hydroelectric power operations. It currently operates approximately 20 production smelting facilities in the field of electrometallurgy: approximately five in Spain, over five in the United States of America, over six in France, over three in South Africa, one in Venezuela, one in Poland, one in Canada, one in Argentina and one in China. It diversifies its production base across approximately five continents, such as Africa, Asia, Europe, North America and South America.
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