Analyzing Cerro Grande Mining (OTCMKTS:CEGMF) and Glencore (OTCMKTS:GLNCY)

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

Risk & Volatility

Cerro Grande Mining has a beta of 3.3, meaning that its stock price is 230% more volatile than the S&P 500. Comparatively, Glencore has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500.

Valuation & Earnings

This table compares Cerro Grande Mining and Glencore”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cerro Grande Mining	N/A	N/A	-$390,000.00	N/A	N/A
Glencore	$230.94 billion	0.27	-$1.63 billion	N/A	N/A

Cerro Grande Mining has higher earnings, but lower revenue than Glencore.

Analyst Ratings

This is a summary of current recommendations for Cerro Grande Mining and Glencore, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cerro Grande Mining	0	0	0	0	0.00
Glencore	0	3	3	1	2.71

Glencore has a consensus target price of $9.30, suggesting a potential downside of 13.08%. Given Glencore’s stronger consensus rating and higher possible upside, analysts plainly believe Glencore is more favorable than Cerro Grande Mining.

Insider & Institutional Ownership

0.1% of Glencore shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cerro Grande Mining	N/A	N/A	N/A
Glencore	N/A	N/A	N/A

Summary

Glencore beats Cerro Grande Mining on 6 of the 8 factors compared between the two stocks.

About Cerro Grande Mining

Cerro Grande Mining Corporation engages in the acquisition, exploration, evaluation, and development of mineral properties in Chile. The company explores for gold, silver, copper, and industrial mineral deposits. It holds interests in Tordillo project, which covers an area of 6,632 hectares located to the southwest of Pimenton; Pimenton mine; and limestone deposits, including Catedral and Cal Norte. The company was formerly known as South American Gold and Copper Company Limited and changed its name to Cerro Grande Mining Corporation in March 2011. Cerro Grande Mining Corporation was founded in 1990 and is based in Toronto, Canada.

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.