Silver Standard Resources (NASDAQ:SSRM) versus Glencore (OTCMKTS:GLNCY) Critical Survey

Silver Standard Resources (NASDAQ:SSRM) and Glencore (OTCMKTS:GLNCY) are both basic materials companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, earnings, risk, dividends, analyst recommendations, institutional ownership and valuation.

Institutional and Insider Ownership

68.3% of Silver Standard Resources shares are held by institutional investors. Comparatively, 0.1% of Glencore shares are held by institutional investors. 0.7% of Silver Standard Resources 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.

Earnings & Valuation

This table compares Silver Standard Resources and Glencore”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Silver Standard Resources	$995.62 million	4.91	-$261.28 million	$0.78	30.94
Glencore	$230.94 billion	0.23	-$1.63 billion	N/A	N/A

Silver Standard Resources has higher earnings, but lower revenue than Glencore.

Volatility and Risk

Silver Standard Resources has a beta of -0.08, suggesting that its share price is 108% less volatile than the S&P 500. Comparatively, Glencore has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.

Profitability

This table compares Silver Standard Resources and Glencore’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Silver Standard Resources	12.66%	4.99%	3.66%
Glencore	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Silver Standard Resources and Glencore, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Silver Standard Resources	0	7	0	0	2.00
Glencore	0	1	1	4	3.50

Silver Standard Resources presently has a consensus target price of $13.55, suggesting a potential downside of 43.85%. Given Silver Standard Resources’ higher possible upside, research analysts plainly believe Silver Standard Resources is more favorable than Glencore.

Summary

Silver Standard Resources beats Glencore on 8 of the 13 factors compared between the two stocks.

About Silver Standard Resources

SSR Mining Inc., together with its subsidiaries, engages in the operation, acquisition, exploration, and development of precious metal resource properties in the United States, Türkiye, Canada, and Argentina. The company explores for gold doré, copper, silver, lead, and zinc deposits. Its mines include the Çöpler, located in Erzincan province, Turkey; the Marigold, located in Nevada, the United States; the Seabee, located in Saskatchewan, Canada; and the Puna, located in Jujuy province, Argentina. The company was formerly known as Silver Standard Resources Inc. and changed its name to SSR Mining Inc. in August 2017. SSR Mining Inc. was incorporated in 1946 and is based in Denver, Colorado.

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.