Reviewing Searchlight Resources (OTCMKTS:CNYCF) and Ferroglobe (NASDAQ:GSM)

Ferroglobe (NASDAQ:GSM) and Searchlight Resources (OTCMKTS:CNYCF) are both small-cap basic materials companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, risk, analyst recommendations, valuation, institutional ownership and profitability.

Valuation and Earnings

This table compares Ferroglobe and Searchlight Resources’ revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ferroglobe	$1.64 billion	0.52	$82.66 million	$0.34	13.35
Searchlight Resources	N/A	N/A	-$1.05 million	N/A	N/A

Ferroglobe has higher revenue and earnings than Searchlight Resources.

Analyst Recommendations

This is a summary of recent ratings and target prices for Ferroglobe and Searchlight Resources, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ferroglobe	0	0	0	0	N/A
Searchlight Resources	0	0	0	0	N/A

Profitability

This table compares Ferroglobe and Searchlight Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ferroglobe	3.92%	15.06%	7.36%
Searchlight Resources	N/A	-65.63%	-63.23%

Risk and Volatility

Ferroglobe has a beta of 1.87, meaning that its stock price is 87% more volatile than the S&P 500. Comparatively, Searchlight Resources has a beta of 2.41, meaning that its stock price is 141% more volatile than the S&P 500.

Institutional and Insider Ownership

89.6% of Ferroglobe shares are owned by institutional investors. 13.1% of Ferroglobe shares are owned by company insiders. Comparatively, 10.1% of Searchlight Resources shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Ferroglobe beats Searchlight Resources on 7 of the 8 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 Searchlight Resources

Searchlight Resources Inc., an exploration stage company, acquires, explores for, and develops mineral properties in Canada. It explores for copper, cobalt, gold, vanadium, nickel, and uranium deposits, as well as rare earth elements. The company holds interests in the Bootleg Lake gold property located near Creighton, Saskatchewan; the Duddridge Lake property situated to the northwest of La Ronge, Saskatchewan; and the Cameron cobalt property located in the north of North Bay, Ontario. It also holds interests in the Flin Flon North project situated in Saskatchewan; the English Bay property located to the north La Ronge, Saskatchewan; the Kulyk Lake rare earth project situated to the north La Ronge, Saskatchewan; the Reef Lake nickel project located in north central Saskatchewan; and the Wapawekka Greenstone project situated to western section of Wapawekka Greenstone Belt. In addition, it has an option to acquire a 100% interest in the Robinson Creek gold project located to the west of Creighton, Saskatchewan. The company was formerly known as Canyon Copper Corp. and changed its name to Searchlight Resources Inc. in July 2018. Searchlight Resources Inc. was incorporated in 2000 and is headquartered in Vancouver, Canada.