Luxfer Holdings PLC (NYSE: LXFR) and Ferroglobe PLC (NASDAQ:GSM) are both industrial products companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, earnings, risk, institutional ownership and profitabiliy.

Dividends

Luxfer Holdings PLC pays an annual dividend of $0.48 per share and has a dividend yield of 3.8%. Ferroglobe PLC does not pay a dividend. Luxfer Holdings PLC pays out 64.9% of its earnings in the form of a dividend.

Volatility and Risk

Luxfer Holdings PLC has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500. Comparatively, Ferroglobe PLC has a beta of 1.75, suggesting that its share price is 75% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Luxfer Holdings PLC and Ferroglobe PLC, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Luxfer Holdings PLC 0 0 0 0 N/A
Ferroglobe PLC 0 1 5 0 2.83

Ferroglobe PLC has a consensus target price of $13.05, indicating a potential upside of 4.07%. Given Ferroglobe PLC’s higher possible upside, analysts clearly believe Ferroglobe PLC is more favorable than Luxfer Holdings PLC.

Earnings and Valuation

This table compares Luxfer Holdings PLC and Ferroglobe PLC’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Luxfer Holdings PLC $409.40 million 0.83 $49.10 million $0.74 17.09
Ferroglobe PLC $1.53 billion 1.41 $32.76 million ($0.69) -18.17

Luxfer Holdings PLC has higher revenue, but lower earnings than Ferroglobe PLC. Ferroglobe PLC is trading at a lower price-to-earnings ratio than Luxfer Holdings PLC, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Luxfer Holdings PLC and Ferroglobe PLC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Luxfer Holdings PLC 4.84% 16.02% 5.29%
Ferroglobe PLC -7.60% -3.96% -1.94%

Institutional and Insider Ownership

84.5% of Luxfer Holdings PLC shares are owned by institutional investors. Comparatively, 40.0% of Ferroglobe PLC shares are owned by institutional investors. 13.1% of Ferroglobe PLC shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

About Luxfer Holdings PLC

Luxfer Holdings PLC is a holding company. The Company is a materials technology company specializing in the design, manufacture and supply of materials, components and gas-containment devices for healthcare, environmental, protection and specialty end-markets. It operates through two divisions: Elektron and Gas Cylinders. Its Elektron Division focuses on specialty materials based primarily on magnesium, zirconium and rare earths. It sells its products through two brands, Magnesium Elektron and MEL Chemicals. Its Gas Cylinders Division manufactures and markets specialized products using aluminum, magnesium, carbon composites and steel. It sells its products through two brands, Luxfer Gas Cylinders and Superform. Its customers include both end users of its products and manufacturers that incorporate its products into finished goods. As of December 31, 2016, it had operated 20 manufacturing plants in the United States, the United Kingdom, Canada, France, the Czech Republic and China.

About Ferroglobe PLC

Ferroglobe PLC, formerly VeloNewco Limited, is engaged in silicon and specialty metals industry. The Company produces silicon metal and silicon- and manganese-based alloy, which serves customers in the chemical, aluminum, solar, steel and ductile iron foundry industries. It operates through two segments: Electrometallurgy and Energy. It Electrometallurgy segment includes its coal and quartz mining operations and its silicon metal and ferroalloy production, whereas the Energy segment consists of its hydroelectric power operations. It currently operates approximately 20 production smelting facilities in the field of electrometallurgy: approximately five in Spain, over five in the United States of America, over six in France, over three in South Africa, one in Venezuela, one in Poland, one in Canada, one in Argentina and one in China. It diversifies its production base across approximately five continents, such as Africa, Asia, Europe, North America and South America.

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