Financial Comparison: Cleveland-Cliffs (NYSE:CLF) vs. Lifezone Metals (NYSE:LZM)
by Kim Johansen · The Markets DailyCleveland-Cliffs (NYSE:CLF – Get Free Report) and Lifezone Metals (NYSE:LZM – Get Free Report) are both materials companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, earnings, risk and institutional ownership.
Volatility and Risk
Cleveland-Cliffs has a beta of 2.09, suggesting that its stock price is 109% more volatile than the S&P 500. Comparatively, Lifezone Metals has a beta of 1.35, suggesting that its stock price is 35% more volatile than the S&P 500.
Earnings and Valuation
This table compares Cleveland-Cliffs and Lifezone Metals”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cleveland-Cliffs | $18.61 billion | 0.41 | -$1.48 billion | ($0.85) | -15.77 |
| Lifezone Metals | $1.06 million | 269.68 | -$13.63 million | ($4.67) | -0.73 |
Lifezone Metals has lower revenue, but higher earnings than Cleveland-Cliffs. Cleveland-Cliffs is trading at a lower price-to-earnings ratio than Lifezone Metals, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Cleveland-Cliffs and Lifezone Metals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cleveland-Cliffs | -2.36% | -6.83% | -2.05% |
| Lifezone Metals | N/A | N/A | N/A |
Analyst Ratings
This is a summary of recent recommendations and price targets for Cleveland-Cliffs and Lifezone Metals, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cleveland-Cliffs | 2 | 6 | 4 | 0 | 2.17 |
| Lifezone Metals | 1 | 1 | 1 | 0 | 2.00 |
Cleveland-Cliffs presently has a consensus target price of $13.82, suggesting a potential upside of 3.10%. Lifezone Metals has a consensus target price of $7.00, suggesting a potential upside of 106.19%. Given Lifezone Metals’ higher probable upside, analysts plainly believe Lifezone Metals is more favorable than Cleveland-Cliffs.
Insider and Institutional Ownership
67.7% of Cleveland-Cliffs shares are owned by institutional investors. 0.9% of Cleveland-Cliffs shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
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 Lifezone Metals
Lifezone Metals Limited engages in the extraction and refining of metals. It supplies lower-carbon and sulfur dioxide emission metals to the battery storage, EV, and hydrogen markets. The company’s products include nickel, copper, and cobalt. Its flagship project is the Kabanga nickel project in North-West Tanzania. The company is based in Ramsey, Isle of Man.