Critical Review: Mechel PAO (MTL) and Cliffs Natural Resources (CLF)
Mechel PAO (NYSE: MTL) and Cliffs Natural Resources (NYSE:CLF) are both basic materials companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, profitability and risk.
Earnings & Valuation
This table compares Mechel PAO and Cliffs Natural Resources’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Mechel PAO||$9.52 billion||0.11||$2.49 billion||N/A||N/A|
|Cliffs Natural Resources||$2.34 billion||0.93||$480.50 million||$0.22||33.46|
Mechel PAO has higher revenue and earnings than Cliffs Natural Resources.
Volatility & Risk
Mechel PAO has a beta of -1.18, indicating that its share price is 218% less volatile than the S&P 500. Comparatively, Cliffs Natural Resources has a beta of 1.65, indicating that its share price is 65% more volatile than the S&P 500.
Institutional & Insider Ownership
8.3% of Mechel PAO shares are owned by institutional investors. Comparatively, 58.3% of Cliffs Natural Resources shares are owned by institutional investors. 36.3% of Mechel PAO shares are owned by insiders. Comparatively, 0.5% of Cliffs Natural Resources shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This table compares Mechel PAO and Cliffs Natural Resources’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Cliffs Natural Resources||2.44%||-13.83%||7.41%|
This is a summary of recent recommendations and price targets for Mechel PAO and Cliffs Natural Resources, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Cliffs Natural Resources||2||3||3||0||2.13|
Cliffs Natural Resources has a consensus price target of $9.00, indicating a potential upside of 22.28%. Given Cliffs Natural Resources’ stronger consensus rating and higher possible upside, analysts plainly believe Cliffs Natural Resources is more favorable than Mechel PAO.
Cliffs Natural Resources beats Mechel PAO on 8 of the 12 factors compared between the two stocks.
About Mechel PAO
Mechel PAO, formerly Mechel OAO, is a holding company. The Company operates in the mining, steel and power industry segments. Its segments include Steel segment, comprising production and sales of semi-finished steel products, carbon and specialty long products, carbon and stainless flat products, and value-added downstream metal products, including forgings, stampings, and hardware, and ferrosilicon; Mining segment, comprising production and sales of coal (coking and steam), and middlings, coke and chemical products, and iron ore, which supplies raw materials to the Steel and Power segments, and also sells raw materials to third parties, and Power segment, comprising generation and sales of electricity and heat power, which supplies electricity and heat power to the Steel and Mining segments, and also sells a portion of electricity and heat power to third parties. It has freight seaports in Russia on the Sea of Japan and on the Sea of Azov, and a freight river port on the Kama River.
About Cliffs Natural Resources
Cleveland-Cliffs Inc, formerly Cliffs Natural Resources Inc., is a mining and natural resources company. The Company is a supplier of iron ore pellets to the North American steel industry from its mines and pellet plants located in Michigan and Minnesota. The Company’s segments include U.S. Iron Ore and Asia Pacific Iron Ore. The Company is a producer of iron ore pellets, primarily selling production from U.S. Iron Ore to integrated steel companies in the United States, Canada and Mexico. Its Asia Pacific Iron Ore operations are located in Western Australia and consist of its Koolyanobbing operation. The Koolyanobbing operations serve the Asian iron ore markets with direct-shipped fines and lump ore. In addition, the Company operates an iron ore mining complex in Western Australia. In the United States, the Company owned four operational iron ore mines and one indefinitely idled mine.
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