Analyzing ArcelorMittal (NYSE:MT) and Iamgold (NYSE:IAG)

Iamgold (NYSE:IAG – Get Free Report) and ArcelorMittal (NYSE:MT – Get Free Report) are both large-cap materials companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, dividends, institutional ownership, earnings, valuation and analyst recommendations.

Valuation & Earnings

This table compares Iamgold and ArcelorMittal”s gross revenue, earnings per share (EPS) and valuation.

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

Risk and Volatility

Iamgold has a beta of 1.39, indicating that its share price is 39% more volatile than the S&P 500. Comparatively, ArcelorMittal has a beta of 1.55, indicating that its share price is 55% more volatile than the S&P 500.

Insider & Institutional Ownership

47.1% of Iamgold shares are held by institutional investors. Comparatively, 9.3% of ArcelorMittal shares are held by institutional investors. 0.2% of Iamgold shares are held by insiders. Comparatively, 0.1% of ArcelorMittal shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

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

Analyst Ratings

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

Iamgold currently has a consensus target price of $22.71, indicating a potential upside of 21.32%. ArcelorMittal has a consensus target price of $74.55, indicating a potential upside of 22.15%. Given ArcelorMittal’s higher probable upside, analysts plainly believe ArcelorMittal is more favorable than Iamgold.

Summary

Iamgold beats ArcelorMittal on 8 of the 15 factors compared between the two stocks.

About Iamgold

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IAMGOLD Corporation, through its subsidiaries, operates as an intermediate gold producer and developer in Canada and Burkina Faso. It owns 100% interest in the Westwood project that covers an area of 1,925 hectare and located in Quebec; a 60% interest in the Côté gold project, which covers an area of 596 square kilometer located in Ontario, Canada; and a 90% interests in the Essakane project that covers an area of 274,000 square kilometer situated in Burkina Faso. IAMGOLD Corporation was incorporated in 1990 and is headquartered in Toronto, Canada.

About ArcelorMittal

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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.