Critical Contrast: FORTESCUE METAL/S (FSUGY) versus Its Rivals

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

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 -326.96% -26.57% -6.69%

Valuation and Earnings

This table compares FORTESCUE METAL/S and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
FORTESCUE METAL/S $6.89 billion $879.00 million 8.99
FORTESCUE METAL/S Competitors $6.29 billion $843.29 million 15.89

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.

Insider and Institutional Ownership

0.1% of FORTESCUE METAL/S shares are owned by institutional investors. Comparatively, 22.9% of shares of all “Metal mining” companies are owned by institutional investors. 8.8% of shares of all “Metal mining” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

FORTESCUE METAL/S has a beta of 1.66, suggesting that its share price is 66% more volatile than the S&P 500. Comparatively, FORTESCUE METAL/S’s peers have a beta of 5.47, suggesting that their average share price is 447% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and target prices 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 364 1145 1343 82 2.39

As a group, “Metal mining” companies have a potential upside of 29.59%. Given FORTESCUE METAL/S’s peers higher probable upside, analysts clearly believe FORTESCUE METAL/S has less favorable growth aspects than its peers.

Dividends

FORTESCUE METAL/S pays an annual dividend of $0.31 per share and has a dividend yield of 5.0%. 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.

Summary

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

FORTESCUE METAL/S Company Profile

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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