Contrasting FORTESCUE METAL/S (FSUGY) & Its Peers

FORTESCUE METAL/S (OTCMKTS: FSUGY) is one of 50 publicly-traded companies in the “Metal mining” industry, but how does it contrast to its peers? We will compare FORTESCUE METAL/S to related companies based on the strength of its valuation, profitability, analyst recommendations, earnings, dividends, risk and institutional ownership.

Dividends

FORTESCUE METAL/S pays an annual dividend of $0.31 per share and has a dividend yield of 5.2%. FORTESCUE METAL/S pays out 44.9% of its earnings in the form of a dividend. As a group, “Metal mining” companies pay a dividend yield of 3.8% and pay out 45.7% of their earnings in the form of a dividend. FORTESCUE METAL/S is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Risk & Volatility

FORTESCUE METAL/S has a beta of 1.94, meaning that its stock price is 94% more volatile than the S&P 500. Comparatively, FORTESCUE METAL/S’s peers have a beta of 5.51, meaning that their average stock price is 451% more volatile than the S&P 500.

Insider & Institutional Ownership

0.1% of FORTESCUE METAL/S shares are held by institutional investors. Comparatively, 22.5% of shares of all “Metal mining” companies are held by institutional investors. 11.4% of shares of all “Metal mining” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for FORTESCUE METAL/S and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FORTESCUE METAL/S 0 0 0 0 N/A
FORTESCUE METAL/S Competitors 360 1142 1340 82 2.39

As a group, “Metal mining” companies have a potential upside of 28.95%. Given FORTESCUE METAL/S’s peers higher probable upside, analysts plainly believe FORTESCUE METAL/S has less favorable growth aspects than its peers.

Profitability

This table compares FORTESCUE METAL/S and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FORTESCUE METAL/S N/A N/A N/A
FORTESCUE METAL/S Competitors -326.67% -26.29% -6.51%

Earnings & Valuation

This table compares FORTESCUE METAL/S and its peers gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
FORTESCUE METAL/S $6.89 billion $879.00 million 8.63
FORTESCUE METAL/S Competitors $6.29 billion $843.29 million 16.45

FORTESCUE METAL/S has higher revenue and earnings than its peers. FORTESCUE METAL/S is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

FORTESCUE METAL/S beats its peers on 7 of the 12 factors compared.

About FORTESCUE METAL/S

Fortescue Metals Group Limited engages in the exploration, development, production, processing, and sale of iron ore in Australia, China, and internationally. The company owns and operates the Chichester Hub that includes the Cloudbreak and Christmas Creek mines located in the Chichester ranges; and the Solomon Hub comprising the Firetail and Kings Valley mines located in the Hamersley ranges of Pilbara, Western Australia. It is also developing the Eliwana mine situated in the Pilbara region of Western Australia. The company was founded in 2003 and is headquartered in East Perth, Australia.

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