Legato Merger (NASDAQ:LEGO) and ArcelorMittal (NYSE:MT) are both basic materials companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, valuation, earnings, risk and analyst recommendations.
This table compares Legato Merger and ArcelorMittal’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
61.5% of Legato Merger shares are owned by institutional investors. Comparatively, 6.8% of ArcelorMittal shares are owned by institutional investors. 0.1% of ArcelorMittal shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This is a breakdown of recent ratings and recommmendations for Legato Merger and ArcelorMittal, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
ArcelorMittal has a consensus target price of $35.47, indicating a potential upside of 9.82%. Given ArcelorMittal’s higher probable upside, analysts plainly believe ArcelorMittal is more favorable than Legato Merger.
Earnings and Valuation
This table compares Legato Merger and ArcelorMittal’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|ArcelorMittal||$53.27 billion||0.61||-$733.00 million||($0.77)||-41.95|
Legato Merger has higher earnings, but lower revenue than ArcelorMittal.
ArcelorMittal beats Legato Merger on 7 of the 8 factors compared between the two stocks.
About Legato Merger
Legato Merger Corp. does not have significant operations. It intends to enter into a merger, share exchange, asset acquisition, stock purchase, recapitalization, reorganization or other similar business combination with one or more businesses or entities. The company was founded in 2020 and is based in New York, New York.
ArcelorMittal SA is a holding company, which engages in steelmaking and mining activities. It operates through the following business segments: NAFTA, Brazil, Europe, Africa and Commonwealth of Independent States (ACIS), Mining, and Others. The NAFTA segment consists of flat products such as slabs, hot-rolled coil, cold-rolled coil, coated steel, and plate. The Brazil segment covers wire rod, bar and rebars, billets, blooms, and wire drawing. The Europe segment offers hot-rolled coil, cold-rolled coil, coated products, tinplate, plate, and slab. The ACIS segment produces a combination of flat, long, and tubular products. The Mining segment focuses on steel operations. The Others segment represents the corporate and shared services, financial activities, and shipping and logistics. The company was founded by Lakshmi Niwas Mittal in 1976 and is headquartered in Luxembourg.
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