Ferroglobe PLC (NASDAQ: GSM) and Luxfer Holdings PLC (NYSE:LXFR) are both basic materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, dividends, risk and institutional ownership.
Insider & Institutional Ownership
40.9% of Ferroglobe PLC shares are held by institutional investors. Comparatively, 84.3% of Luxfer Holdings PLC shares are held by institutional investors. 13.1% of Ferroglobe PLC shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Luxfer Holdings PLC pays an annual dividend of $0.48 per share and has a dividend yield of 4.1%. Ferroglobe PLC does not pay a dividend. Luxfer Holdings PLC pays out 82.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This table compares Ferroglobe PLC and Luxfer Holdings PLC’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Luxfer Holdings PLC||3.85%||14.70%||5.12%|
Volatility & Risk
Ferroglobe PLC has a beta of 1.76, indicating that its stock price is 76% more volatile than the S&P 500. Comparatively, Luxfer Holdings PLC has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500.
Earnings and Valuation
This table compares Ferroglobe PLC and Luxfer Holdings PLC’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Ferroglobe PLC||$1.53 billion||1.49||$32.76 million||($0.69)||-19.25|
|Luxfer Holdings PLC||$405.00 million||0.78||$48.00 million||$0.58||20.22|
Luxfer Holdings PLC has higher revenue, but lower earnings than Ferroglobe PLC. Ferroglobe PLC is trading at a lower price-to-earnings ratio than Luxfer Holdings PLC, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings for Ferroglobe PLC and Luxfer Holdings PLC, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Luxfer Holdings PLC||0||0||0||0||N/A|
Ferroglobe PLC presently has a consensus target price of $13.85, suggesting a potential upside of 4.29%. Given Ferroglobe PLC’s higher probable upside, equities research analysts clearly believe Ferroglobe PLC is more favorable than Luxfer Holdings PLC.
About Ferroglobe PLC
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.
About Luxfer Holdings PLC
Luxfer Holdings PLC is a holding company. The Company is a materials technology company specializing in the design, manufacture and supply of materials, components and gas-containment devices for healthcare, environmental, protection and specialty end-markets. It operates through two divisions: Elektron and Gas Cylinders. Its Elektron Division focuses on specialty materials based primarily on magnesium, zirconium and rare earths. It sells its products through two brands, Magnesium Elektron and MEL Chemicals. Its Gas Cylinders Division manufactures and markets specialized products using aluminum, magnesium, carbon composites and steel. It sells its products through two brands, Luxfer Gas Cylinders and Superform. Its customers include both end users of its products and manufacturers that incorporate its products into finished goods. As of December 31, 2016, it had operated 20 manufacturing plants in the United States, the United Kingdom, Canada, France, the Czech Republic and China.
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