Salzgitter (OTCMKTS:SZGPY – Get Free Report) and Mesabi Trust (NYSE:MSB – Get Free Report) are both materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, dividends, institutional ownership, analyst recommendations and earnings.
Volatility and Risk
Salzgitter has a beta of 1.7, suggesting that its share price is 70% more volatile than the S&P 500. Comparatively, Mesabi Trust has a beta of 0.34, suggesting that its share price is 66% less volatile than the S&P 500.
Valuation and Earnings
This table compares Salzgitter and Mesabi Trust”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Salzgitter | $10.16 billion | 0.36 | -$83.95 million | $0.12 | 57.00 |
| Mesabi Trust | $17.52 million | 17.05 | $13.87 million | $0.86 | 26.48 |
Mesabi Trust has lower revenue, but higher earnings than Salzgitter. Mesabi Trust is trading at a lower price-to-earnings ratio than Salzgitter, indicating that it is currently the more affordable of the two stocks.
Dividends
Salzgitter pays an annual dividend of $0.01 per share and has a dividend yield of 0.1%. Mesabi Trust pays an annual dividend of $0.20 per share and has a dividend yield of 0.9%. Salzgitter pays out 8.3% of its earnings in the form of a dividend. Mesabi Trust pays out 23.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Profitability
This table compares Salzgitter and Mesabi Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Salzgitter | 0.65% | 1.30% | 0.55% |
| Mesabi Trust | 75.32% | 54.83% | 46.67% |
Analyst Ratings
This is a summary of recent ratings and price targets for Salzgitter and Mesabi Trust, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Salzgitter | 0 | 3 | 5 | 0 | 2.62 |
| Mesabi Trust | 0 | 1 | 0 | 0 | 2.00 |
Summary
Mesabi Trust beats Salzgitter on 7 of the 13 factors compared between the two stocks.
About Salzgitter
Salzgitter AG, together with its subsidiaries, engages in steel and technology businesses worldwide. It operates through four segments: Steel Production, Steel Processing, Trading, and Technology. The Steel Production segment manufactures steel and special steels, such as hot-rolled wide strip, steel sheet, sections, tailored blanks, as well as scrap trading. The Steel Processing segment produces various high-grade heavy plates; and manufactures line pipes, HFI-welded tubes, and precision and stainless-steel tubes. The Trading segment operates a European sales network, as well as trading companies and agencies worldwide. The Technology segment engages in the provision of machinery and plants for the filling and packaging of beverages, as well as special machinery engineering for shoe manufacturing and elastomer production. The company also provides IT, facility management, logistics, automotive engineering, and research and development services, as well as supplies raw materials. The company was founded in 1858 and is headquartered in Salzgitter, Germany.
About Mesabi Trust
Mesabi Trust, a royalty trust, engages in iron ore mining business in the United States. Mesabi Trust was founded in 1961 and is based in New York, New York.
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