South32 (OTCMKTS:SOUHY) versus Capstone Copper (OTCMKTS:CSFFF) Head-To-Head Analysis

Capstone Copper (OTCMKTS:CSFFF) and South32 (OTCMKTS:SOUHY) are both basic materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, risk, valuation, profitability, dividends, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Capstone Copper and South32, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Capstone Copper	0	0	0	0	0.00
South32	0	6	0	1	2.29

Given Capstone Copper’s higher probable upside, research analysts clearly believe Capstone Copper is more favorable than South32.

Profitability

This table compares Capstone Copper and South32’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Capstone Copper	14.67%	3.23%	1.72%
South32	N/A	N/A	N/A

Insider & Institutional Ownership

0.6% of Capstone Copper shares are owned by institutional investors. Comparatively, 0.1% of South32 shares are owned by institutional investors. 0.2% of South32 shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Capstone Copper	$1.60 billion	0.00	$82.91 million	$0.11	N/A
South32	$5.78 billion	1.80	$213.00 million	N/A	N/A

South32 has higher revenue and earnings than Capstone Copper.

About Capstone Copper

Capstone Mining Corp. engages in the exploration and production of base metals in the United States, Mexico, Canada, and Chile. The company explores for copper, molybdenum, silver, zinc, lead, iron, and gold deposits. It holds interests in the Pinto Valley, an open pit copper mine located in Arizona, the United States; and the Cozamin, a copper-silver underground mine located in the state of Zacatecas, Mexico. The company also owns a 100% interest in copper-iron-gold Santo Domingo development project in Region III, Chile. The company was formerly known as Capstone Gold Corp. and changed its name to Capstone Mining Corp. in February 2006. The company is headquartered in Vancouver, 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.