Head to Head Comparison: AngloGold Ashanti (NYSE:AU) vs. Cleveland-Cliffs (NYSE:CLF)
by Danessa Lincoln · The Markets DailyCleveland-Cliffs (NYSE:CLF – Get Free Report) and AngloGold Ashanti (NYSE:AU – Get Free Report) are both materials companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, valuation, risk, earnings, dividends, analyst recommendations and institutional ownership.
Valuation and Earnings
This table compares Cleveland-Cliffs and AngloGold Ashanti”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cleveland-Cliffs | $18.61 billion | 0.38 | -$1.48 billion | ($1.62) | -7.75 |
| AngloGold Ashanti | $9.89 billion | 4.52 | $2.64 billion | $7.46 | 11.87 |
AngloGold Ashanti has lower revenue, but higher earnings than Cleveland-Cliffs. Cleveland-Cliffs is trading at a lower price-to-earnings ratio than AngloGold Ashanti, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Cleveland-Cliffs and AngloGold Ashanti’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cleveland-Cliffs | -4.56% | -13.37% | -3.96% |
| AngloGold Ashanti | 32.19% | 38.77% | 25.72% |
Risk and Volatility
Cleveland-Cliffs has a beta of 2.09, suggesting that its stock price is 109% more volatile than the S&P 500. Comparatively, AngloGold Ashanti has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings and target prices for Cleveland-Cliffs and AngloGold Ashanti, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cleveland-Cliffs | 2 | 6 | 3 | 0 | 2.09 |
| AngloGold Ashanti | 0 | 2 | 6 | 1 | 2.89 |
Cleveland-Cliffs currently has a consensus target price of $12.35, indicating a potential downside of 1.66%. AngloGold Ashanti has a consensus target price of $122.83, indicating a potential upside of 38.73%. Given AngloGold Ashanti’s stronger consensus rating and higher probable upside, analysts clearly believe AngloGold Ashanti is more favorable than Cleveland-Cliffs.
Insider & Institutional Ownership
67.7% of Cleveland-Cliffs shares are owned by institutional investors. Comparatively, 36.1% of AngloGold Ashanti shares are owned by institutional investors. 0.9% of Cleveland-Cliffs shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Summary
AngloGold Ashanti beats Cleveland-Cliffs on 11 of the 15 factors compared between the two stocks.
About Cleveland-Cliffs
Cleveland-Cliffs is the largest flat-rolled steel company and the largest iron ore pellet producer in North America. The company is vertically integrated from mining through iron making, steelmaking, rolling, finishing and downstream with hot and cold stamping of steel parts and components. 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.
About AngloGold Ashanti
AngloGold Ashanti plc operates as a gold mining company in Africa, Australia, and the Americas. The company primarily explores for gold, as well as produces silver and sulphuric acid as by-products. Its flagship property is a 100% owned Geita mine located in the Lake Victoria goldfields of the Mwanza region in north-western Tanzania. AngloGold Ashanti plc was incorporated in 1944 and is headquartered in Greenwood Village, Colorado.