Analyzing Glencore (OTCMKTS:GLNCY) and Entree Gold (OTCMKTS:ERLFF)

Glencore (OTCMKTS:GLNCY) and Entree Gold (OTCMKTS:ERLFF) are both 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 owned by institutional investors. 3.4% of Entree Gold shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Glencore	0	2	2	3	3.14
Entree Gold	0	1	0	0	2.00

Glencore currently has a consensus price target of $9.30, suggesting a potential upside of 2.42%. Given Glencore’s stronger consensus rating and higher possible upside, equities analysts clearly believe Glencore is more favorable than Entree Gold.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Glencore	$230.94 billion	0.23	-$1.63 billion	N/A	N/A
Entree Gold	N/A	N/A	-$14.32 million	($0.09)	-17.92

Entree Gold has lower revenue, but higher earnings than Glencore.

Profitability

This table compares Glencore and Entree Gold’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
Entree Gold	N/A	N/A	-229.63%

Volatility & Risk

Glencore has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500. Comparatively, Entree Gold has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500.

Summary

Glencore beats Entree Gold on 8 of the 10 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 Entree Gold

Entrée Resources Ltd., a mining company, engages in the exploration, evaluation, and development of mineral property interests in Canada. Its principal asset is the Entrée/Oyu Tolgoi joint venture property comprising Hugo North Extension copper-gold deposit and the Heruga copper-gold-molybdenum deposit located in Mongolia. The company was formerly known as Entrée Gold Inc. and changed its name to Entrée Resources Ltd. in May 2017. Entrée Resources Ltd. was incorporated in 1995 and is headquartered in Vancouver, Canada.