Head-To-Head Review: FORTESCUE METAL/S (FSUGY) versus The Competition

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

Valuation and Earnings

This table compares FORTESCUE METAL/S and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
FORTESCUE METAL/S $6.89 billion $879.00 million 8.87
FORTESCUE METAL/S Competitors $6.29 billion $843.29 million 15.54

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

Institutional & Insider Ownership

0.1% of FORTESCUE METAL/S shares are held by institutional investors. Comparatively, 22.9% 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 stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations for FORTESCUE METAL/S and its rivals, 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 365 1146 1346 82 2.39

As a group, “Metal mining” companies have a potential upside of 31.52%. Given FORTESCUE METAL/S’s rivals higher possible upside, analysts plainly believe FORTESCUE METAL/S has less favorable growth aspects than its rivals.

Dividends

FORTESCUE METAL/S pays an annual dividend of $0.31 per share and has a dividend yield of 5.1%. 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 3.9% 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 rivals, given its higher yield and lower payout ratio.

Profitability

This table compares FORTESCUE METAL/S and its rivals’ 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 -313.37% -20.92% -4.43%

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 rivals have a beta of 5.47, suggesting that their average share price is 447% more volatile than the S&P 500.

Summary

FORTESCUE METAL/S beats its rivals 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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