Acerinox (OTCMKTS:ANIOY – Get Free Report) and Cleveland-Cliffs (NYSE:CLF – Get Free Report) are both mid-cap basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, valuation, dividends, analyst recommendations and risk.
Earnings and Valuation
This table compares Acerinox and Cleveland-Cliffs”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Acerinox | $5.86 billion | 0.52 | $243.41 million | $0.19 | 32.29 |
| Cleveland-Cliffs | $19.19 billion | 0.28 | -$754.00 million | ($3.41) | -3.14 |
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Acerinox and Cleveland-Cliffs, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Acerinox | 0 | 1 | 3 | 0 | 2.75 |
| Cleveland-Cliffs | 1 | 4 | 3 | 0 | 2.25 |
Cleveland-Cliffs has a consensus price target of $10.96, suggesting a potential upside of 2.19%. Given Cleveland-Cliffs’ higher possible upside, analysts plainly believe Cleveland-Cliffs is more favorable than Acerinox.
Institutional and Insider Ownership
67.7% of Cleveland-Cliffs shares are owned by institutional investors. 1.8% of Cleveland-Cliffs shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Risk and Volatility
Acerinox has a beta of 1.2, meaning that its stock price is 20% more volatile than the S&P 500. Comparatively, Cleveland-Cliffs has a beta of 1.93, meaning that its stock price is 93% more volatile than the S&P 500.
Profitability
This table compares Acerinox and Cleveland-Cliffs’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Acerinox | 1.59% | 3.54% | 1.41% |
| Cleveland-Cliffs | -9.03% | -17.97% | -6.03% |
Summary
Acerinox beats Cleveland-Cliffs on 8 of the 13 factors compared between the two stocks.
About Acerinox
Acerinox, S.A., together with its subsidiaries, manufactures, process, and markets stainless steel products in Spain, the United States, Africa, Asia, Rest of Europe, and internationally. It operates through Stainless steel, and High-performance Alloys segments. The company offers flat products, including hot and cold rolled coils and sheets, strips, flat bars, and discs, as well as engraved coil and sheet, black coil, slabs, circles, billets, and plates. It provides long products, which include wire and hexagonal wire rods, peeled bars, hot and cold reinforcement bars, black bars, profiles, angles, and steel profiles, as well as stainless steel, color coated, and reinforcement wires. In additions, it offers stainless steel products, such as austenitic, ferritic, duplex, and martensitic. Acerinox, S.A. was incorporated in 1970 and is headquartered in Madrid, Spain.
About Cleveland-Cliffs
Cleveland-Cliffs is the largest flat-rolled steel company and the largest iron ore pellet producer in North America. The company is vertically integrated from mining through iron making, steelmaking, rolling, finishing and downstream with hot and cold stamping of steel parts and components. The company was formerly known as Cliffs Natural Resources Inc. and changed its name to Cleveland-Cliffs Inc. in August 2017. Cleveland-Cliffs Inc. was founded in 1847 and is headquartered in Cleveland, Ohio.
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