Critical Comparison: EVRAZ (EVRZF) vs. ArcelorMittal (MT)

EVRAZ (OTCMKTS: EVRZF) and ArcelorMittal (NYSE:MT) are both basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, dividends, earnings and profitability.

Insider & Institutional Ownership

5.0% of ArcelorMittal shares are held by institutional investors. 0.1% of ArcelorMittal shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares EVRAZ and ArcelorMittal’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
EVRAZ $10.83 billion 0.85 $681.36 million $0.48 13.50
ArcelorMittal $68.68 billion 0.49 $4.57 billion $5.34 6.19

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

Profitability

This table compares EVRAZ and ArcelorMittal’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
EVRAZ N/A N/A N/A
ArcelorMittal 6.63% 11.85% 5.53%

Dividends

ArcelorMittal pays an annual dividend of $0.09 per share and has a dividend yield of 0.3%. EVRAZ does not pay a dividend. ArcelorMittal pays out 1.7% of its earnings in the form of a dividend.

Volatility & Risk

EVRAZ has a beta of -3.38, meaning that its share price is 438% less volatile than the S&P 500. Comparatively, ArcelorMittal has a beta of 2.38, meaning that its share price is 138% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for EVRAZ and ArcelorMittal, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EVRAZ 0 0 0 0 N/A
ArcelorMittal 0 2 8 0 2.80

ArcelorMittal has a consensus price target of $37.33, suggesting a potential upside of 12.96%. Given ArcelorMittal’s higher possible upside, analysts plainly believe ArcelorMittal is more favorable than EVRAZ.

Summary

ArcelorMittal beats EVRAZ on 12 of the 15 factors compared between the two stocks.

About EVRAZ

EVRAZ plc, together with its subsidiaries, produces and distributes steel and related products. The company operates through four segments: Steel; Steel, North America; Coal; and Other Operations. Its products include construction products, industrial products, railway products, vanadium products, and pipes, as well as raw materials, such as iron ore, coal, and limestone products. The company is involved in the extraction of vanadium ore; iron ore mining and enrichment; and coal mining and enrichment, as well as energy-generation, shipping, and railway transportation businesses. It has operations in the Commonwealth of Independent States, America, Asia, Europe, Africa, and internationally. The company was founded in 1992 and is headquartered in Moscow, Russia. EVRAZ plc is a subsidiary of Lanebrook Limited.

About ArcelorMittal

ArcelorMittal, together with its subsidiaries, owns and operates steel manufacturing and mining facilities in Europe, North and South America, Asia, and Africa. It operates through NAFTA, Brazil, Europe, ACIS, and Mining segments. The company produces finished and semi-finished steel products with various specifications. Its principal steel products include semi-finished flat products, such as slabs; finished flat products comprising plates, hot- and cold-rolled coils and sheets, hot-dipped and electro-galvanized coils and sheets, and tinplate and color coated coils and sheets; semi-finished long products, such as blooms and billets; finished long products, including bars, wire-rods, structural sections, rails, sheet piles, and wire-products; and seamless and welded pipes and tubes. The company's principal mining products comprise iron ore lump, fines, concentrate, pellets, and sinter feed; and coking, pulverized coal injection, and thermal coal. It provides its steel products to the automotive, appliance, engineering, construction, energy, and machinery industries. The company sells its products in local markets and through a centralized marketing organization to customers in approximately 160 countries. It has iron ore mining activities in Brazil, Bosnia, Canada, Kazakhstan, Liberia, Mexico, Ukraine, and the United States; and coal mining activities in Kazakhstan and the United States. The company was founded in 1976 and is headquartered in Luxembourg City, Luxembourg.

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