Comparing First Colombia Gold (OTCMKTS:FCGD) and South32 (OTCMKTS:SOUHY)

First Colombia Gold (OTCMKTS:FCGD) and South32 (OTCMKTS:SOUHY) are both basic materials companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, risk, valuation, institutional ownership, analyst recommendations and earnings.

Analyst Ratings

This is a summary of current recommendations and price targets for First Colombia Gold and South32, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Colombia Gold	0	0	0	0	0.00
South32	1	1	1	1	2.50

Given First Colombia Gold’s higher possible upside, analysts plainly believe First Colombia Gold is more favorable than South32.

Valuation & Earnings

This table compares First Colombia Gold and South32″s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Colombia Gold	N/A	N/A	N/A	N/A	N/A
South32	$5.78 billion	2.31	$213.00 million	N/A	N/A

South32 has higher revenue and earnings than First Colombia Gold.

Profitability

This table compares First Colombia Gold and South32’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Colombia Gold	N/A	N/A	N/A
South32	N/A	N/A	N/A

Institutional & Insider Ownership

0.1% of South32 shares are held by institutional investors. 0.0% of First Colombia Gold shares are held by company insiders. Comparatively, 0.2% of South32 shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

First Colombia Gold has a beta of 0.66, meaning that its stock price is 34% less volatile than the S&P 500. Comparatively, South32 has a beta of 0.69, meaning that its stock price is 31% less volatile than the S&P 500.

Summary

South32 beats First Colombia Gold on 7 of the 8 factors compared between the two stocks.

About First Colombia Gold

First Colombia Gold Corp. engages in the exploration and production of oil and gas properties. The company operates through Energy and Mining divisions. It holds interests in 96 oil wells with a gross acreage of 4,302 acres in the counties of Cumberland, Monroe, Overton, and Clinton. The company is also involved in the precious minerals exploration business. It owns 2 unpatented mining claims in the Skip Silver prospect covering an area of approximately 40 acres in central Montana. The company was formerly known as Amazon Goldsands Ltd. and changed its name to First Colombia Gold Corp. in November 2010. First Colombia Gold Corp. was founded in 1997 and is based in Nashville, Tennessee.

About South32

South32 Limited operates as a diversified metals and mining company in Australia, India, China, Japan, the Middle East, Mozambique, the Netherlands, Brazil, Russia, South Africa, South Korea, the United States, and internationally. The company operates through Worsley Alumina, Brazil Alumina, Brazil Aluminium, Hillside Aluminium, Mozal Aluminium, Sierra Gorda, Cannington, Hermosa, Cerro Matoso, Illawarra Metallurgical Coal, Australia Manganese, and South Africa Manganese segments. It has a portfolio of assets producing bauxite, alumina, aluminum, copper, silver, lead, zinc, nickel, metallurgical coal, manganese, ferronickel, and other base metals. The company also exports its products. South32 Limited was incorporated in 2000 and is headquartered in Perth, Australia.