Comparing South32 (OTCMKTS:SOUHY) and First Colombia Gold (OTCMKTS:FCGD)

South32 (OTCMKTS:SOUHY) and First Colombia Gold (OTCMKTS:FCGD) are both basic materials companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, valuation, profitability, institutional ownership, risk and earnings.

Risk and Volatility

South32 has a beta of 0.69, meaning that its share price is 31% less volatile than the S&P 500. Comparatively, First Colombia Gold has a beta of 0.12, meaning that its share price is 88% less volatile than the S&P 500.

Valuation & Earnings

This table compares South32 and First Colombia Gold”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
South32	$5.78 billion	2.40	$213.00 million	N/A	N/A
First Colombia Gold	N/A	N/A	N/A	N/A	N/A

South32 has higher revenue and earnings than First Colombia Gold.

Profitability

This table compares South32 and First Colombia Gold’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
South32	N/A	N/A	N/A
First Colombia Gold	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current ratings for South32 and First Colombia Gold, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
South32	1	1	1	1	2.50
First Colombia Gold	0	0	0	0	0.00

Given First Colombia Gold’s higher probable upside, analysts clearly believe First Colombia Gold is more favorable than South32.

Insider & Institutional Ownership

0.1% of South32 shares are held by institutional investors. 0.2% of South32 shares are held by insiders. Comparatively, 0.0% of First Colombia Gold shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

South32 beats First Colombia Gold on 7 of the 8 factors compared between the two stocks.

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.

About First Colombia Gold

First Colombia Gold Corp. engages in the exploration and production of oil and gas properties. The company operates through Energy and Mining divisions. It holds interests in 96 oil wells with a gross acreage of 4,302 acres in the counties of Cumberland, Monroe, Overton, and Clinton. The company is also involved in the precious minerals exploration business. It owns 2 unpatented mining claims in the Skip Silver prospect covering an area of approximately 40 acres in central Montana. The company was formerly known as Amazon Goldsands Ltd. and changed its name to First Colombia Gold Corp. in November 2010. First Colombia Gold Corp. was founded in 1997 and is based in Nashville, Tennessee.