Head to Head Review: FORTESCUE METAL/S (FSUGY) & The Competition

FORTESCUE METAL/S (OTCMKTS: FSUGY) is one of 50 publicly-traded companies in the “Metal mining” industry, but how does it compare to its peers? We will compare FORTESCUE METAL/S to related businesses based on the strength of its risk, analyst recommendations, earnings, institutional ownership, valuation, profitability and dividends.

Dividends

FORTESCUE METAL/S pays an annual dividend of $0.31 per share and has a dividend yield of 5.2%. FORTESCUE METAL/S pays out 44.9% of its earnings in the form of a dividend. As a group, “Metal mining” companies pay a dividend yield of 3.8% and pay out 45.7% of their earnings in the form of a dividend. FORTESCUE METAL/S is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares FORTESCUE METAL/S and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
FORTESCUE METAL/S $6.89 billion $879.00 million 8.66
FORTESCUE METAL/S Competitors $6.29 billion $843.29 million 16.26

FORTESCUE METAL/S has higher revenue and earnings than its peers. FORTESCUE METAL/S is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a breakdown of recent ratings and price targets for FORTESCUE METAL/S and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FORTESCUE METAL/S 0 0 0 0 N/A
FORTESCUE METAL/S Competitors 361 1144 1342 82 2.39

As a group, “Metal mining” companies have a potential upside of 28.49%. Given FORTESCUE METAL/S’s peers higher probable upside, analysts plainly believe FORTESCUE METAL/S has less favorable growth aspects than its peers.

Risk and Volatility

FORTESCUE METAL/S has a beta of 1.66, indicating that its stock price is 66% more volatile than the S&P 500. Comparatively, FORTESCUE METAL/S’s peers have a beta of 5.47, indicating that their average stock price is 447% more volatile than the S&P 500.

Insider & Institutional Ownership

0.1% of FORTESCUE METAL/S shares are owned by institutional investors. Comparatively, 22.5% of shares of all “Metal mining” companies are owned by institutional investors. 11.4% of shares of all “Metal mining” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares FORTESCUE METAL/S and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FORTESCUE METAL/S N/A N/A N/A
FORTESCUE METAL/S Competitors -326.90% -26.56% -6.69%

Summary

FORTESCUE METAL/S beats its peers on 7 of the 11 factors compared.

FORTESCUE METAL/S Company Profile

Fortescue Metals Group Limited engages in the exploration, development, production, processing, and sale of iron ore in Australia, China, and internationally. The company owns and operates the Chichester Hub that includes the Cloudbreak and Christmas Creek mines located in the Chichester ranges; and the Solomon Hub comprising the Firetail and Kings Valley mines located in the Hamersley ranges of Pilbara, Western Australia. It is also developing the Eliwana mine situated in the Pilbara region of Western Australia. The company was founded in 2003 and is headquartered in East Perth, Australia.

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