Financial Analysis: Vale (NYSE:VALE) & DeFi Technologies (OTC:DEFTF)

Vale (NYSE:VALE) and DeFi Technologies (OTC:DEFTF) are both basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, dividends, valuation and institutional ownership.

Profitability

This table compares Vale and DeFi Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vale	23.07%	22.23%	9.71%
DeFi Technologies	N/A	232.34%	12.17%

Insider and Institutional Ownership

21.9% of Vale shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations for Vale and DeFi Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vale	1	3	7	0	2.55
DeFi Technologies	0	0	0	0	N/A

Vale currently has a consensus target price of $16.17, suggesting a potential upside of 45.58%. Given Vale’s higher possible upside, equities analysts plainly believe Vale is more favorable than DeFi Technologies.

Earnings and Valuation

This table compares Vale and DeFi Technologies”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vale	$42.06 billion	1.18	$7.98 billion	$1.81	6.14
DeFi Technologies	$7.67 million	81.00	-$15.03 million	($0.07)	-29.81

Vale has higher revenue and earnings than DeFi Technologies. DeFi Technologies is trading at a lower price-to-earnings ratio than Vale, indicating that it is currently the more affordable of the two stocks.

Summary

Vale beats DeFi Technologies on 8 of the 11 factors compared between the two stocks.

About Vale

Vale S.A., together with its subsidiaries, produces and sells iron ore and iron ore pellets for use as raw materials in steelmaking in Brazil and internationally. The company operates through Iron Solutions and Energy Transition Materials segments. The Iron Solutions segment produces and extracts iron ore and pellets, manganese, and other ferrous products; and provides related logistic services. The Energy Transition Materials segment produces and extracts nickel used to produce stainless steel, electric vehicles, and metal alloys; and its by-products, such as gold, silver, cobalt, precious metals, platinum, and others, as well as copper used in the construction sector to produce pipes and electrical wires. The company was formerly known as Companhia Vale do Rio Doce and changed its name to Vale S.A. in May 2009. Vale S.A. was founded in 1942 and is headquartered in Rio de Janeiro, Brazil.

About DeFi Technologies

DeFi Technologies Inc., a technology company, develops and lists exchange traded products in Canada, Bermuda, and the Cayman Islands. The company provides asset management services, such as investment vehicles, indirect exposure to underlying cryptocurrencies, digital asset indexes, and other decentralized finance instruments. It also participates in decentralized blockchain networks by processing data transactions that contribute to network security and stability, governance, and transaction validation. In addition, the company invests in decentralized finance companies in early-stage ventures. Further, it offers node management of decentralized protocols to support governance, security, and transaction validation for their networks. The company was formerly known as Valour Inc. and changed its name to DeFi Technologies Inc. in July 2023. DeFi Technologies Inc. was incorporated in 1986 and is headquartered in Toronto, Canada.