Financial Comparison: Glencore (OTCMKTS:GLNCY) vs. CGG (CGG)

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

Risk and Volatility

Glencore has a beta of 2.14, indicating that its stock price is 114% more volatile than the S&P 500. Comparatively, CGG has a beta of 2.56, indicating that its stock price is 156% more volatile than the S&P 500.

Earnings & Valuation

This table compares Glencore and CGG’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Glencore $205.48 billion 0.36 $5.78 billion $0.78 12.99
CGG $1.32 billion 0.05 -$514.90 million N/A N/A

Glencore has higher revenue and earnings than CGG.

Profitability

This table compares Glencore and CGG’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
CGG -39.01% -66.78% -11.14%

Insider & Institutional Ownership

0.1% of Glencore shares are held by institutional investors. Comparatively, 0.2% of CGG shares are held by institutional investors. 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.

Dividends

Glencore pays an annual dividend of $0.34 per share and has a dividend yield of 3.4%. CGG pays an annual dividend of $1.38 per share and has a dividend yield of 47.6%. Glencore pays out 43.6% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current recommendations and price targets for Glencore and CGG, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Glencore 1 2 4 0 2.43
CGG 0 0 2 0 3.00

Summary

Glencore beats CGG on 7 of the 12 factors compared between the two stocks.

Glencore Company Profile

Glencore plc engages in the production, refinement, processing, storage, transport and marketing of metals and minerals, energy products, and agricultural products worldwide. It operates in three segments: Metals and Minerals, Energy Products, and Agricultural Products. The Metals and Minerals segment is involved in smelting, refining, mining, processing, and storing zinc, copper, lead, alumina, aluminum, ferroalloys, nickel, cobalt, and iron ore. The Energy Products segment activities include coal mining and oil production operations covering crude oil, oil products, steam coal, and metallurgical coal; and investments in ports, vessels, and storage facilities. The Agricultural Products segment engages in the storage, handling, processing, and port facilities of wheat, corn, canola, barley, rice, oil seeds, meals, edible oils, biofuels, cotton, and sugar. Glencore plc markets and delivers physical commodities sourced from third party producers and its production to industrial consumers in the automotive, steel, power generation, oil, and food processing industries. The company was formerly known as Glencore Xstrata plc and changed its name to Glencore plc in May 2014. Glencore plc was founded in 1974 and is headquartered in Baar, Switzerland.

CGG Company Profile

CGG, a geoscience company, provides data imaging, seismic data characterization, geoscience, and petroleum engineering consulting services to the oil and gas exploration and production industry in North America, the Central and South Americas, Europe, Africa, the Middle East, and the Asia Pacific. The company's Equipment segment develops and produces seismic equipment in the land and marine seismic markets, and offers customer support services. This segment offers geophysical equipment for seismic data acquisition, including seismic recording equipment, software, and seismic sources for land or marine. Its Contractual Data Acquisition segment provides geophysical acquisition services comprising land, marine, airborne, and seabed. It offers marine seismic 2D and 3D, and marine seismic contract data acquisition and multi-client surveys services. As of December 31, 2017, this segment had a fleet of five 3D high capacity vessels. It is also involved in the acquisition and onsite processing of seismic data acquired on land areas; acquisition, processing, and interpretation of airborne geophysical data on land or offshore; collection, processing, and interpretation of data related to the earth's surface, the soils, and rocks beneath; acquisition and data processing of marine gravity and magnetic data; development and licensing of commercial software; and licensing of data from gravity and magnetics data. The company's Geology, Geophysics & Reservoir segment develops and licenses multi-client seismic surveys; processes seismic data; sells seismic data processing and reservoir characterization software; offers geoscience and petroleum engineering consulting services; collects, develops, and licenses geological data; and provides data management services and software. The company was formerly known as Compagnie Générale de Géophysique ? Veritas SA and changed its name to CGG in 2013. CGG was founded in 1931 and is headquartered in Paris, France.

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