Vedanta (NYSE:VEDL) and EMX Royalty (NYSE:EMX) are both basic materials companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.
Insider and Institutional Ownership
3.8% of Vedanta shares are owned by institutional investors. Comparatively, 8.9% of EMX Royalty shares are owned by institutional investors. 62.9% of Vedanta shares are owned 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.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Vedanta and EMX Royalty, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Vedanta | 0 | 0 | 0 | 0 | N/A |
| EMX Royalty | 0 | 0 | 1 | 0 | 3.00 |
EMX Royalty has a consensus target price of $4.50, suggesting a potential upside of 107.37%. Given EMX Royalty’s higher possible upside, analysts plainly believe EMX Royalty is more favorable than Vedanta.
Valuation & Earnings
This table compares Vedanta and EMX Royalty’s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Vedanta | $11.91 billion | 1.29 | $1.54 billion | $2.72 | 6.07 |
| EMX Royalty | $5.37 million | 42.58 | -$4.48 million | ($0.17) | -12.76 |
Vedanta has higher revenue and earnings than EMX Royalty. EMX Royalty is trading at a lower price-to-earnings ratio than Vedanta, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Vedanta has a beta of 1.7, suggesting that its share price is 70% more volatile than the S&P 500. Comparatively, EMX Royalty has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500.
Profitability
This table compares Vedanta and EMX Royalty’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Vedanta | 17.13% | 48.89% | 20.81% |
| EMX Royalty | -229.26% | -20.07% | -16.63% |
Summary
Vedanta beats EMX Royalty on 9 of the 13 factors compared between the two stocks.
Vedanta Company Profile
Vedanta Ltd. is a natural resource company, which engages in the exploration, extraction, and processing of minerals, oil, and gas properties. It operates through the following segments: Copper, Aluminum, Iron Ore, Power, and Oil & Gas. The Copper segment focuses in custom smelting and also include a copper smelter, a refinery, a phosphoric acid plant, a sulphuric acid plant, a copper rod plant, and three captive power plants. The Aluminum segment comprises refinery and a captive power plant at Lanjigarh and a smelter, a thermal coal based captive power facility at Jharsuguda both situated in the State of Odisha in India. The Iron Ore segment explores, mines, and processes iron ore, pig iron, and metallurgical coke. The Power segment consists 600 MW thermal coal-based commercial power facility at Jharsuguda in the State of Odisha in Eastern India. The Oil and Gas segment involves in the exploration and development and production of oil and gas. The company was founded by Dwarka Prasad Agarwal on June 25, 1965 and is headquartered in Mumbai, India.
EMX Royalty Company Profile
EMX Royalty Corp. engages in the acquisition and exploration of precious and base metals properties. The firm focuses on the gold, copper, silver, lead, zinc and molybdenum properties. It conducts exploration on properties located primarily in Turkey, Haiti, Kyrgyz Republic, Europe, Southwest United States, and Asia Pacific. The company was founded on 1996 and is headquartered in Vancouver, Canada.
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