Reviewing South32 (OTCMKTS:SOUHY) & NioCorp Developments (NASDAQ:NB)

NioCorp Developments (NASDAQ:NB) and South32 (OTCMKTS:SOUHY) are both basic materials companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, earnings, dividends, profitability, valuation and risk.

Institutional and Insider Ownership

4.0% of NioCorp Developments shares are held by institutional investors. Comparatively, 0.1% of South32 shares are held by institutional investors. 19.1% of NioCorp Developments shares are held by insiders. Comparatively, 0.2% of South32 shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares NioCorp Developments and South32″s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NioCorp Developments	N/A	N/A	-$16.70 million	($0.34)	-11.74
South32	$5.48 billion	1.56	-$203.00 million	N/A	N/A

NioCorp Developments has higher earnings, but lower revenue than South32.

Volatility and Risk

NioCorp Developments has a beta of -0.37, suggesting that its stock price is 137% less volatile than the S&P 500. Comparatively, South32 has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for NioCorp Developments and South32, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NioCorp Developments	0	0	2	0	3.00
South32	1	5	0	0	1.83

NioCorp Developments currently has a consensus target price of $4.50, indicating a potential upside of 12.78%. Given NioCorp Developments’ stronger consensus rating and higher possible upside, equities analysts clearly believe NioCorp Developments is more favorable than South32.

Profitability

This table compares NioCorp Developments and South32’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NioCorp Developments	N/A	-298.16%	-91.68%
South32	N/A	N/A	N/A

Summary

NioCorp Developments beats South32 on 6 of the 10 factors compared between the two stocks.

About NioCorp Developments

NioCorp Developments Ltd. engages in the exploration and development of mineral deposits in North America. It owns and develops the Elk Creek niobium/scandium/titanium project that owns one 226.43-acre parcel of land and associated mineral rights, and an additional 40 acres of mineral rights, as well as an optioned land package that covers an area of 1,396 acres located in Johnson County, southeast Nebraska. The company was formerly known as Quantum Rare Earth Developments Corp. and changed its name to NioCorp Developments Ltd. in March 2013. NioCorp Developments Ltd. was incorporated in 1987 and is headquartered in Centennial, Colorado.

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.