Cleveland-Cliffs (NYSE:CLF) and Alderon Iron Ore (OTCMKTS:AXXDF) are both basic materials companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, profitability, earnings, analyst recommendations, risk and valuation.
Cleveland-Cliffs pays an annual dividend of $0.20 per share and has a dividend yield of 1.7%. Alderon Iron Ore does not pay a dividend. Cleveland-Cliffs pays out 9.4% of its earnings in the form of a dividend.
This table compares Cleveland-Cliffs and Alderon Iron Ore’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Cleveland-Cliffs||$2.33 billion||1.49||$1.13 billion||$2.13||5.47|
|Alderon Iron Ore||N/A||N/A||-$74.90 million||N/A||N/A|
Cleveland-Cliffs has higher revenue and earnings than Alderon Iron Ore.
Insider & Institutional Ownership
71.0% of Cleveland-Cliffs shares are owned by institutional investors. 0.9% of Cleveland-Cliffs shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This table compares Cleveland-Cliffs and Alderon Iron Ore’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Alderon Iron Ore||N/A||-4.86%||-3.74%|
This is a summary of current recommendations and price targets for Cleveland-Cliffs and Alderon Iron Ore, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Alderon Iron Ore||0||0||0||0||N/A|
Cleveland-Cliffs presently has a consensus target price of $11.80, suggesting a potential upside of 1.25%. Given Cleveland-Cliffs’ higher probable upside, research analysts clearly believe Cleveland-Cliffs is more favorable than Alderon Iron Ore.
Volatility and Risk
Cleveland-Cliffs has a beta of 1.82, indicating that its stock price is 82% more volatile than the S&P 500. Comparatively, Alderon Iron Ore has a beta of 0.46, indicating that its stock price is 54% less volatile than the S&P 500.
Cleveland-Cliffs beats Alderon Iron Ore on 10 of the 12 factors compared between the two stocks.
Cleveland-Cliffs Company Profile
Cleveland-Cliffs Inc. operates as an iron ore mining company in the United States. The company operates four iron ore mines in Michigan and Minnesota. It sells its products to integrated steel companies and steel producers in the United States and the Asia Pacific. 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.
Alderon Iron Ore Company Profile
Alderon Iron Ore Corp. engages in the acquisition, exploration, and development of mineral properties. Its principal asset is the Kami iron ore project that comprises 283 claim units covering an area of 7,075 hectares located in Western Labrador, Canada. The company was formerly known as Alderon Resource Corp. and changed its name to Alderon Iron Ore Corp. in September 2011. Alderon Iron Ore Corp. was incorporated in 1978 and is headquartered in Vancouver, Canada.
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