South32 (OTCMKTS:SOUHY) & Energizer Resources (OTCMKTS:NSRCF) Critical Survey

Energizer Resources (OTCMKTS:NSRCF) 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 valuation, analyst recommendations, profitability, risk, earnings, dividends and institutional ownership.

Earnings and Valuation

This table compares Energizer Resources and South32″s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Energizer Resources	$710,000.00	80.74	-$23.26 million	($0.14)	-2.21
South32	$5.78 billion	1.61	$213.00 million	N/A	N/A

South32 has higher revenue and earnings than Energizer Resources.

Profitability

This table compares Energizer Resources and South32’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Energizer Resources	N/A	-44.28%	-24.17%
South32	N/A	N/A	N/A

Volatility and Risk

Energizer Resources has a beta of 1.31, indicating that its stock price is 31% more volatile than the S&P 500. Comparatively, South32 has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500.

Institutional and Insider Ownership

0.1% of South32 shares are held by institutional investors. 4.6% of Energizer Resources shares are held by company insiders. Comparatively, 0.2% of South32 shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations for Energizer Resources and South32, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Energizer Resources	0	0	0	0	0.00
South32	0	6	0	1	2.29

Summary

South32 beats Energizer Resources on 7 of the 10 factors compared between the two stocks.

About Energizer Resources

NextSource Materials Inc. acquires, explores for, and develops mineral properties in Madagascar and Canada. The company primarily explores for graphite and vanadium deposits. Its flagship property is the 100% owned Molo graphite mine project located in the Southern Madagascar Region, Madagascar. The company was formerly known as Energizer Resources Inc. The company was founded in 2004 and is headquartered in Toronto, Canada.

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.