Head-To-Head Review: Acerinox (OTCMKTS:ANIOY) vs. ArcelorMittal (NYSE:MT)

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

Volatility and Risk

Acerinox has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500. Comparatively, ArcelorMittal has a beta of 1.52, indicating that its stock price is 52% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Acerinox	1.17%	2.85%	1.08%
ArcelorMittal	4.23%	4.94%	2.84%

Analyst Recommendations

This is a breakdown of current ratings for Acerinox and ArcelorMittal, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Acerinox	0	1	4	0	2.80
ArcelorMittal	0	6	5	0	2.45

ArcelorMittal has a consensus target price of $40.98, indicating a potential downside of 26.87%. Given ArcelorMittal’s higher probable upside, analysts plainly believe ArcelorMittal is more favorable than Acerinox.

Earnings and Valuation

This table compares Acerinox and ArcelorMittal”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Acerinox	$5.86 billion	N/A	$243.41 million	$0.15	50.00
ArcelorMittal	$62.44 billion	0.70	$1.34 billion	$3.36	16.68

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

Insider & Institutional Ownership

9.3% of ArcelorMittal shares are held by institutional investors. 0.1% of ArcelorMittal shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Acerinox pays an annual dividend of $0.22 per share and has a dividend yield of 2.9%. ArcelorMittal pays an annual dividend of $0.47 per share and has a dividend yield of 0.8%. Acerinox pays out 146.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. ArcelorMittal pays out 14.0% of its earnings in the form of a dividend.

Summary

ArcelorMittal beats Acerinox on 12 of the 15 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 ArcelorMittal

ArcelorMittal S.A., together with its subsidiaries, operates as integrated steel and mining companies in the United States, Europe, and internationally. It offers semi-finished flat products, including slabs; finished flat products comprising plates, hot- and cold-rolled coils and sheets, hot-dipped and electro-galvanized coils and sheets, tinplate, and color coated coils and sheets; semi-finished long products, such as blooms and billets; finished long products consisting of bars, wire-rods, structural sections, rails, sheet piles, and wire-products; and seamless and welded pipes and tubes. The company also provides mining products, such as iron ore lumps, fines, concentrates, pellets, and sinter feeds; and coking coal. It sells its products to various customers in the automotive, appliance, engineering, construction, energy, and machinery industries through a centralized marketing organization, as well as distributors. The company has iron ore mining activities in Brazil, Bosnia, Canada, Liberia, Mexico, South Africa, and Ukraine. ArcelorMittal S.A. was founded in 1976 and is headquartered in Luxembourg City, Luxembourg.