Financial Analysis: FORTESCUE METAL/S (FSUGY) vs. Its Peers

FORTESCUE METAL/S (OTCMKTS: FSUGY) is one of 51 publicly-traded companies in the “Metal mining” industry, but how does it weigh in compared to its competitors? We will compare FORTESCUE METAL/S to similar companies based on the strength of its dividends, earnings, analyst recommendations, risk, profitability, valuation and institutional ownership.

Profitability

This table compares FORTESCUE METAL/S and its competitors’ 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 -326.52% -26.14% -6.46%

Risk and Volatility

FORTESCUE METAL/S has a beta of 1.94, indicating that its share price is 94% more volatile than the S&P 500. Comparatively, FORTESCUE METAL/S’s competitors have a beta of 5.38, indicating that their average share price is 438% more volatile than the S&P 500.

Insider and Institutional Ownership

0.1% of FORTESCUE METAL/S shares are owned by institutional investors. Comparatively, 22.5% 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 hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Dividends

FORTESCUE METAL/S pays an annual dividend of $0.31 per share and has a dividend yield of 5.5%. 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 competitors, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for FORTESCUE METAL/S and its competitors, 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 358 1133 1338 81 2.39

As a group, “Metal mining” companies have a potential upside of 32.08%. Given FORTESCUE METAL/S’s competitors higher probable upside, analysts clearly believe FORTESCUE METAL/S has less favorable growth aspects than its competitors.

Earnings and Valuation

This table compares FORTESCUE METAL/S and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
FORTESCUE METAL/S $6.89 billion $879.00 million 8.23
FORTESCUE METAL/S Competitors $6.09 billion $816.73 million 16.42

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

Summary

FORTESCUE METAL/S beats its competitors 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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