Critical Review: ANA (OTCMKTS:ALNPY) versus Acerinox (OTCMKTS:ANIOY)

Acerinox (OTCMKTS:ANIOY) and ANA (OTCMKTS:ALNPY) are both basic materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, profitability, risk, analyst recommendations, institutional ownership, dividends and earnings.

Profitability

This table compares Acerinox and ANA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Acerinox	0.79%	8.11%	3.28%
ANA	6.75%	13.85%	4.07%

Volatility & Risk

Acerinox has a beta of 1.45, indicating that its share price is 45% more volatile than the S&P 500. Comparatively, ANA has a beta of 0.53, indicating that its share price is 47% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Acerinox and ANA, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Acerinox	0	0	0	0	N/A
ANA	0	0	0	0	N/A

Dividends

Acerinox pays an annual dividend of $0.24 per share and has a dividend yield of 5.2%. ANA pays an annual dividend of $0.08 per share and has a dividend yield of 2.1%. Acerinox pays out 300.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. ANA pays out 22.2% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares Acerinox and ANA”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Acerinox	$7.15 billion	0.32	$246.90 million	$0.08	57.76
ANA	$14.24 billion	N/A	$1.08 billion	$0.36	10.72

ANA has higher revenue and earnings than Acerinox. ANA is trading at a lower price-to-earnings ratio than Acerinox, indicating that it is currently the more affordable of the two stocks.

Summary

ANA beats Acerinox on 7 of the 10 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 ANA

ANA Holdings Inc., together with its subsidiaries, provides air transportation services in Japan and internationally. It operates through Air Transportation, Aviation-Related Business, Travel Business, and Trading Business segments. The Air Transportation segment offers regular and irregular air transport of passengers, cargo, etc. on domestic and international routes. The Aviation-Related Business segment provides services incidental to air transportation, such as airport handling and maintenance. The Travel Business develops and sells travel products, as well as plans and sells package travel products. The Trading Business imports and exports aviation-related materials, as well as sells through stores and mail-order channels. The company was formerly known as All Nippon Airways Co., Ltd. and changed its name to ANA Holdings Inc. in April 2013. ANA Holdings Inc. was incorporated in 1920 and is headquartered in Minato, Japan.