Fortescue (FSUMF) and Its Peers Critical Contrast

Fortescue (OTCMKTS:FSUMF) is one of 1,989 publicly-traded companies in the “Metals & Mining” industry, but how does it compare to its rivals? We will compare Fortescue to related businesses based on the strength of its earnings, risk, analyst recommendations, valuation, institutional ownership, dividends and profitability.

Analyst Ratings

This is a summary of current ratings and target prices for Fortescue and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fortescue	0	2	0	0	2.00
Fortescue Competitors	6312	22407	32008	1754	2.47

As a group, “Metals & Mining” companies have a potential upside of 15.62%. Given Fortescue’s rivals stronger consensus rating and higher probable upside, analysts plainly believe Fortescue has less favorable growth aspects than its rivals.

Dividends

Fortescue pays an annual dividend of $0.20 per share and has a dividend yield of 1.5%. Fortescue pays out 21.4% of its earnings in the form of a dividend. As a group, “Metals & Mining” companies pay a dividend yield of 8.5% and pay out 10.6% of their earnings in the form of a dividend. Fortescue lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares Fortescue and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fortescue	N/A	N/A	N/A
Fortescue Competitors	-1,155,490,457,955,101,400.00%	-14.47%	-2.08%

Insider & Institutional Ownership

15.3% of Fortescue shares are held by institutional investors. Comparatively, 16.2% of shares of all “Metals & Mining” companies are held by institutional investors. 17.6% of shares of all “Metals & Mining” companies 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.

Valuation and Earnings

This table compares Fortescue and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Fortescue	N/A	N/A	13.94
Fortescue Competitors	$169.66 billion	$266.77 million	-21.12

Fortescue’s rivals have higher revenue and earnings than Fortescue. Fortescue is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

Fortescue rivals beat Fortescue on 9 of the 13 factors compared.

Fortescue Company Profile

Fortescue Ltd engages in the exploration, development, production, processing, and sale of iron ore in Australia, China, and internationally. It explores for copper, gold, and lithium deposits; and rare earth elements. 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, Kings Valley, and Queens Valley mines located in the Hamersley ranges of Pilbara, Western Australia. It also develops and produces the Eliwana mine situated in the Pilbara region of Western Australia. In addition, the company holds a portfolio of properties situated in Argentina, Peru, Chile, and Brazil, as well as Portugal and Kazakhstan. Further, it provides port towage services; owns and operates rail and port facilities; and focuses on producing green energy and green hydrogen, including derivatives comprising green ammonia. The company was formerly known as Fortescue Metals Group Limited and changed its name to Fortescue Ltd in November 2023. Fortescue Ltd was incorporated in 1983 and is headquartered in East Perth, Australia.