Reviewing ArcelorMittal (MT) and Dynamic Materials Corp. (BOOM)

Dynamic Materials Corp. (NASDAQ: BOOM) and ArcelorMittal (NYSE:MT) are both industrial products companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, earnings, profitability, dividends, analyst recommendations, valuation and institutional ownership.

Valuation & Earnings

This table compares Dynamic Materials Corp. and ArcelorMittal’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Dynamic Materials Corp. $158.57 million 2.03 -$6.50 million ($1.33) -16.39
ArcelorMittal $56.79 billion 0.52 $1.78 billion $3.33 8.75

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

Institutional and Insider Ownership

86.0% of Dynamic Materials Corp. shares are owned by institutional investors. Comparatively, 3.6% of ArcelorMittal shares are owned by institutional investors. 5.1% of Dynamic Materials Corp. shares are owned by insiders. Comparatively, 0.1% of ArcelorMittal 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.

Analyst Recommendations

This is a summary of recent ratings and price targets for Dynamic Materials Corp. and ArcelorMittal, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dynamic Materials Corp. 0 0 1 0 3.00
ArcelorMittal 1 2 10 0 2.69

Dynamic Materials Corp. presently has a consensus price target of $22.00, indicating a potential upside of 0.92%. ArcelorMittal has a consensus price target of $32.66, indicating a potential upside of 12.09%. Given ArcelorMittal’s higher possible upside, analysts clearly believe ArcelorMittal is more favorable than Dynamic Materials Corp..

Dividends

Dynamic Materials Corp. pays an annual dividend of $0.08 per share and has a dividend yield of 0.4%. ArcelorMittal does not pay a dividend. Dynamic Materials Corp. pays out -6.0% of its earnings in the form of a dividend.

Profitability

This table compares Dynamic Materials Corp. and ArcelorMittal’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dynamic Materials Corp. -10.69% -1.20% -0.81%
ArcelorMittal 5.50% 10.52% 4.58%

Risk & Volatility

Dynamic Materials Corp. has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.Comparatively, ArcelorMittal has a beta of 2.19, indicating that its share price is 119% more volatile than the S&P 500.

Summary

ArcelorMittal beats Dynamic Materials Corp. on 9 of the 15 factors compared between the two stocks.

Dynamic Materials Corp. Company Profile

DMC Global Inc., formerly Dynamic Materials Corporation, is a diversified technology company. The Company operates a family of technical product and process businesses serving the energy, industrial and infrastructure markets. The Company’s businesses operate through an international network of manufacturing, distribution and sales facilities. The Company’s segments are NobelClad and DynaEnergetics. The NobelClad segment is engaged in the production of explosion-welded clad metal plates for use in the construction of corrosion resistant industrial processing equipment and specialized transition joints. The DynaEnergetics segment manufactures, markets and sells oilfield perforating equipment and explosives, including detonating cords, detonators, bi-directional boosters and shaped charges, and seismic related explosives and accessories. It owns explosive metalworking and metallic processes, and registered trademarks, including Detaclad, Detacouple, EFTEK, ETJ 2000 and NOBELCLAD.

ArcelorMittal Company Profile

ArcelorMittal S.A. (ArcelorMittal) is a holding company. The Company, together with its subsidiaries, owns and operates steel manufacturing and mining facilities in Europe, North and South America, Asia and Africa. ArcelorMittal operates through five segments, which include NAFTA; Europe; Brazil; Africa and Commonwealth of Independent States (ACIS), and Mining. The NAFTA segment produces flat, long and tubular products. The Brazil segment includes the flat operations of Brazil, and the long and tubular operations of Brazil and neighboring countries. The Europe segment is the flat steel producer in Europe. The ACIS segment produces a combination of flat, long products and tubular products. The Mining segment comprises all mines owned by ArcelorMittal in the Americas, Asia, Europe and Africa. It produces a range of finished and semi-finished steel products (semis).

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