Financial Analysis: Glencore (OTCMKTS:GLNCY) versus Franklin Mining (OTCMKTS:FMNJ)

Glencore (OTCMKTS:GLNCY) and Franklin Mining (OTCMKTS:FMNJ) are both basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, analyst recommendations, dividends and valuation.

Volatility & Risk

Glencore has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500. Comparatively, Franklin Mining has a beta of -0.96, meaning that its stock price is 196% less volatile than the S&P 500.

Institutional and Insider Ownership

0.1% of Glencore shares are held by institutional investors. 20.0% of Franklin Mining shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Glencore and Franklin Mining’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
Franklin Mining	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Glencore and Franklin Mining, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Glencore	0	5	6	1	2.67
Franklin Mining	0	0	0	0	0.00

Glencore currently has a consensus price target of $9.30, suggesting a potential downside of 37.08%. Given Glencore’s stronger consensus rating and higher possible upside, research analysts plainly believe Glencore is more favorable than Franklin Mining.

Valuation & Earnings

This table compares Glencore and Franklin Mining”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Glencore	$247.54 billion	0.35	$363.00 million	N/A	N/A
Franklin Mining	N/A	N/A	-$430,000.00	($0.03)	-0.01

Glencore has higher revenue and earnings than Franklin Mining.

Summary

Glencore beats Franklin Mining on 8 of the 9 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 Franklin Mining

Franklin Mining, Inc., a mining and exploration company, acquires and develops mineral properties. The company explores for gold, silver, lead, and zinc deposits. It owns interests in the La Joya mining concession in Bolivia; and Madre de Dios Area, Ch-Mine, and Los Totems project in Peru. The company was formerly known as WCM Capital, Inc. Franklin Mining, Inc. was founded in 1864 and is based in Carson City, Nevada.