DeFi Technologies (OTC:DEFTF) & Ferroglobe (NASDAQ:GSM) Critical Analysis

Ferroglobe (NASDAQ:GSM) and DeFi Technologies (OTC:DEFTF) are both small-cap basic materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, risk, institutional ownership, profitability, analyst recommendations and valuation.

Earnings & Valuation

This table compares Ferroglobe and DeFi Technologies’ top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ferroglobe	$1.65 billion	0.50	$82.66 million	$0.34	13.00
DeFi Technologies	$7.67 million	85.79	-$15.03 million	($0.07)	-31.57

Ferroglobe has higher revenue and earnings than DeFi Technologies. DeFi Technologies is trading at a lower price-to-earnings ratio than Ferroglobe, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Ferroglobe and DeFi Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ferroglobe	4.11%	11.27%	5.74%
DeFi Technologies	N/A	549.52%	13.45%

Analyst Ratings

This is a summary of current ratings and price targets for Ferroglobe and DeFi Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ferroglobe	0	0	0	0	N/A
DeFi Technologies	0	0	0	0	N/A

Insider and Institutional Ownership

89.6% of Ferroglobe shares are held by institutional investors. 13.1% of Ferroglobe 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.

Summary

Ferroglobe beats DeFi Technologies on 7 of the 10 factors compared between the two stocks.

About Ferroglobe

Ferroglobe PLC operates in the silicon and specialty metals industry in the United States, Europe, and internationally. It provides silicone chemicals that are used in a range of applications, including personal care items, construction-related products, health care products, and electronics, as well as silicon metal for primary and secondary aluminum producers; silicomanganese, which is used as deoxidizing agent in the steel manufacturing process; and ferromanganese that is used as a deoxidizing, desulphurizing, and degassing agent in the removal of nitrogen and other harmful elements from steel. The company also offers ferrosilicon products that are used to produce stainless steel, carbon steel, and various other steel alloys, as well as to manufacture electrodes and aluminum; calcium silicon, which is used in the deoxidation and desulfurization of liquid steel, and production of coatings for cast iron pipes, as well as in the welding process of powder metal and in pyrotechnics; and nodularizers and inoculants, which are used in the production of iron. In addition, it provides silica fume, a by-product of the electrometallurgical process of silicon metal and ferrosilicon. Further, the company operates quartz mines in South Africa, Spain, the United States, and Canada; and low-ash metallurgical coal mines in the United States, as well as holds interests in hydroelectric power plant in France. It serves silicone chemical, aluminum, and steel manufacturers; auto companies and their suppliers; ductile iron foundries; manufacturers of photovoltaic solar cells and computer chips; and concrete producers. The company was formerly known as VeloNewco Limited and changed its name to Ferroglobe PLC in December 2015. The company was incorporated in 2015 and is headquartered in London, the United Kingdom.

About DeFi Technologies

DeFi Technologies Inc., a technology company, develops and lists exchange traded products in Canada, Bermuda, and the Cayman Islands. The company provides asset management services, such as investment vehicles, indirect exposure to underlying cryptocurrencies, digital asset indexes, and other decentralized finance instruments. It also participates in decentralized blockchain networks by processing data transactions that contribute to network security and stability, governance, and transaction validation. In addition, the company invests in decentralized finance companies in early-stage ventures. Further, it offers node management of decentralized protocols to support governance, security, and transaction validation for their networks. The company was formerly known as Valour Inc. and changed its name to DeFi Technologies Inc. in July 2023. DeFi Technologies Inc. was incorporated in 1986 and is headquartered in Toronto, Canada.