Financial Comparison: Legato Merger (NASDAQ:LEGO) & ArcelorMittal (NYSE:MT)

ArcelorMittal (NYSE:MT) and Legato Merger (NASDAQ:LEGO) are both basic materials companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, risk, valuation, profitability, earnings, analyst recommendations and institutional ownership.

Earnings & Valuation

This table compares ArcelorMittal and Legato Merger’s 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 N/A N/A N/A N/A N/A

Legato Merger has lower revenue, but higher earnings than ArcelorMittal.

Profitability

This table compares ArcelorMittal and Legato Merger’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ArcelorMittal 11.49% 15.22% 7.58%
Legato Merger N/A N/A N/A

Insider and Institutional Ownership

6.8% of ArcelorMittal shares are held by institutional investors. Comparatively, 61.5% of Legato Merger shares are held by institutional investors. 0.1% of ArcelorMittal shares are held 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.

Analyst Recommendations

This is a breakdown of current ratings and price targets for ArcelorMittal and Legato Merger, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ArcelorMittal 0 1 11 0 2.92
Legato Merger 0 0 0 0 N/A

ArcelorMittal presently has a consensus price target of $35.47, suggesting a potential upside of 9.82%. Given ArcelorMittal’s higher possible upside, analysts plainly believe ArcelorMittal is more favorable than Legato Merger.

Summary

ArcelorMittal beats Legato Merger on 7 of the 8 factors compared between the two stocks.

About ArcelorMittal

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.

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.

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