Critical Analysis: Orocobre (OROCF) & SMC Corp JAPAN/S (SMCAY)

Orocobre (OTCMKTS:OROCF) and SMC Corp JAPAN/S (OTCMKTS:SMCAY) are both basic materials companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, dividends, earnings and risk.

Profitability

This table compares Orocobre and SMC Corp JAPAN/S’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Orocobre N/A N/A N/A
SMC Corp JAPAN/S 23.64% 12.16% 10.42%

Risk & Volatility

Orocobre has a beta of 1.53, meaning that its share price is 53% more volatile than the S&P 500. Comparatively, SMC Corp JAPAN/S has a beta of 1.33, meaning that its share price is 33% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Orocobre and SMC Corp JAPAN/S, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Orocobre 0 0 0 0 N/A
SMC Corp JAPAN/S 0 0 0 0 N/A

Valuation & Earnings

This table compares Orocobre and SMC Corp JAPAN/S’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Orocobre $17.38 million 43.43 $1.92 million N/A N/A
SMC Corp JAPAN/S $5.34 billion 3.95 $1.23 billion $0.93 16.84

SMC Corp JAPAN/S has higher revenue and earnings than Orocobre.

Dividends

SMC Corp JAPAN/S pays an annual dividend of $0.13 per share and has a dividend yield of 0.8%. Orocobre does not pay a dividend. SMC Corp JAPAN/S pays out 14.0% of its earnings in the form of a dividend.

Insider & Institutional Ownership

0.0% of Orocobre shares are owned by institutional investors. Comparatively, 0.8% of SMC Corp JAPAN/S shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

SMC Corp JAPAN/S beats Orocobre on 7 of the 10 factors compared between the two stocks.

Orocobre Company Profile

Orocobre Limited engages in the exploration, development, and production of lithium, potash, and boron deposits in Argentina. The company's flagship project is the Salar de Olaroz lithium project located in the Jujuy province of northern Argentina. It also produces minerals, refined products, and boric acid. In addition, the company owns 33.5% interest in Advantage Lithium Corp., which manages an 85,543 hectare portfolio of assets in Argentina, including the Cauchari joint venture; and a 100% interest in 5 other lithium properties. Orocobre Limited is based in Milton, Australia.

SMC Corp JAPAN/S Company Profile

SMC Corporation manufactures, processes, and sells automatic control equipment, sintered filters, and various types of filtration equipment worldwide. The company offers directional control valves, air cylinders, rotary actuators/air grippers, vacuum equipment, air preparation equipment, modular F.R.L./pressure control equipment, lubrication equipment, fittings and tubing, flow control equipment, silencers/exhaust cleaners/blow guns/pressure gauges, and switches/sensors/controllers. It also provides static neutralization equipment, process valves, chemical liquid valves/fittings and needle valves/tubing, process pumps, process gas equipment, industrial filters/sintered metal elements, temperature control equipment, electric actuators/cylinders, high vacuum equipment, hydraulic equipment, and pneumatic instrumentation equipment. The company was formerly known as Shoketsu Kinzoku Kogyo Co., Ltd. and changed its name to SMC Corporation in April 1986. SMC Corporation was founded in 1959 and is headquartered in Tokyo, Japan.

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