Impala Platinum (OTCMKTS:IMPUY) & Glencore (OTCMKTS:GLNCY) Head-To-Head Review

Impala Platinum (OTCMKTS:IMPUY) and Glencore (OTCMKTS:GLNCY) are both large-cap basic materials companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, earnings, risk, dividends, valuation, analyst recommendations and profitability.

Institutional & Insider Ownership

0.1% of Glencore shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations for Impala Platinum and Glencore, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Impala Platinum	0	1	2	0	2.67
Glencore	0	3	6	2	2.91

Impala Platinum currently has a consensus price target of $23.00, suggesting a potential upside of 95.41%. Glencore has a consensus price target of $9.30, suggesting a potential downside of 40.15%. Given Impala Platinum’s higher possible upside, equities analysts clearly believe Impala Platinum is more favorable than Glencore.

Dividends

Impala Platinum pays an annual dividend of $0.36 per share and has a dividend yield of 3.1%. Glencore pays an annual dividend of $0.27 per share and has a dividend yield of 1.7%.

Valuation & Earnings

This table compares Impala Platinum and Glencore”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Impala Platinum	$4.71 billion	2.24	$41.85 million	N/A	N/A
Glencore	$247.54 billion	0.37	$363.00 million	N/A	N/A

Glencore has higher revenue and earnings than Impala Platinum.

Profitability

This table compares Impala Platinum and Glencore’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Impala Platinum	N/A	N/A	N/A
Glencore	N/A	N/A	N/A

Risk and Volatility

Impala Platinum has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500. Comparatively, Glencore has a beta of 0.6, suggesting that its stock price is 40% less volatile than the S&P 500.

Summary

Glencore beats Impala Platinum on 6 of the 10 factors compared between the two stocks.

About Impala Platinum

Impala Platinum Holdings Limited engages in the mining, processing, concentrating, refining, and sale of platinum group metals (PGMs) and associated base metals. The company produces platinum, palladium, rhodium, nickel, and by-products, as well as ruthenium, iridium, and gold. It has operations on the PGM-bearing orebodies, including the Bushveld Complex located in South Africa; and the Great Dyke situated in Zimbabwe, as well as the Canadian Shield. The company markets and sells its products in South Africa, Japan, China, the United States, and Europe. Impala Platinum Holdings Limited was incorporated in 1957 and is based in Sandton, South Africa.

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.