Glencore (OTCMKTS:GLNCY – Get Free Report) and Seiko Epson (OTCMKTS:SEKEY – Get Free Report) are both basic materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, risk, analyst recommendations and institutional ownership.
Insider and Institutional Ownership
0.1% of Glencore shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Analyst Ratings
This is a summary of recent ratings and target prices for Glencore and Seiko Epson, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Glencore | 0 | 0 | 0 | 4 | 4.00 |
Seiko Epson | 0 | 0 | 0 | 0 | 0.00 |
Risk and Volatility
Glencore has a beta of 1.34, indicating that its share price is 34% more volatile than the S&P 500. Comparatively, Seiko Epson has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500.
Earnings and Valuation
This table compares Glencore and Seiko Epson”s gross revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Glencore | $217.83 billion | 0.27 | $4.28 billion | N/A | N/A |
Seiko Epson | $8.68 billion | 0.79 | $347.68 million | $0.49 | 18.11 |
Glencore has higher revenue and earnings than Seiko Epson.
Profitability
This table compares Glencore and Seiko Epson’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Glencore | N/A | N/A | N/A |
Seiko Epson | 3.54% | 5.62% | 3.22% |
Dividends
Glencore pays an annual dividend of $0.22 per share and has a dividend yield of 2.3%. Seiko Epson pays an annual dividend of $0.16 per share and has a dividend yield of 1.8%. Seiko Epson pays out 32.7% of its earnings in the form of a dividend.
Summary
Glencore beats Seiko Epson on 8 of the 12 factors compared between the two stocks.
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.
About Seiko Epson
Seiko Epson Corporation, together with its subsidiaries, develops, manufactures, sells, and provides services for products in the printing solutions, visual communications, manufacturing-related and wearables, and other businesses. It operates through three segments: Printing Solutions, Visual Communications, and Manufacturing-related and Wearables segments. The Printing Solutions segment offers home and office inkjet printers, serial impact dot matrix printers, page printers, color image scanners, dry process office papermaking systems, commercial and industrial inkjet printers, inkjet printheads, printers for use in POS systems, label printers, printer consumables, and others. The Visual Communications segment provides 3LCD projectors for business, education, the home, and event; smart glasses; and others. The Manufacturing-related and Wearables segment offers wristwatches, watch movements, and others; factory automation products, industrial robots, compact injection molders, and other production systems; and crystal units, crystal oscillators, quartz sensors, and others for consumer, automotive, and industrial equipment applications. This segment also provides CMOS LSIs and other chips primarily for consumer electronics and automotive applications; and metal powders for use as raw materials in the production of electronic components, etc., as well as value-added surface finishing in a range of industrial fields. The company also sells PCs, etc. It has operations in Japan, the Philippines, the United States, Indonesia, China, and internationally. Seiko Epson Corporation was incorporated in 1942 and is headquartered in Suwa, Japan.
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