Metallus (NYSE:MTUS) vs. Centerra Gold (NYSE:CGAU) Critical Review

Metallus (NYSE:MTUS) and Centerra Gold (NYSE:CGAU) are both materials companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, earnings, analyst recommendations, risk and profitability.

Profitability

This table compares Metallus and Centerra Gold’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Metallus	0.66%	3.35%	2.02%
Centerra Gold	36.92%	15.35%	10.73%

Earnings and Valuation

This table compares Metallus and Centerra Gold”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Metallus	$1.16 billion	0.73	-$1.20 million	$0.19	107.19
Centerra Gold	$1.38 billion	2.85	$583.99 million	$3.13	6.46

Centerra Gold has higher revenue and earnings than Metallus. Centerra Gold is trading at a lower price-to-earnings ratio than Metallus, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

77.6% of Metallus shares are owned by institutional investors. Comparatively, 55.4% of Centerra Gold shares are owned by institutional investors. 3.8% of Metallus shares are owned by insiders. Comparatively, 0.2% of Centerra Gold shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Metallus has a beta of 1.37, meaning that its share price is 37% more volatile than the S&P 500. Comparatively, Centerra Gold has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Metallus and Centerra Gold, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Metallus	0	3	0	0	2.00
Centerra Gold	1	1	5	0	2.57

Centerra Gold has a consensus target price of $21.00, suggesting a potential upside of 3.89%. Given Centerra Gold’s stronger consensus rating and higher probable upside, analysts plainly believe Centerra Gold is more favorable than Metallus.

Summary

Centerra Gold beats Metallus on 10 of the 14 factors compared between the two stocks.

About Metallus

Metallus Inc. manufactures and sells alloy steel, and carbon and micro-alloy steel products in the United States and internationally. The company offers special bar quality (SBQ) bars, seamless mechanical tubes, precision steel components, and billets that are used in gears, hubs, axles, crankshafts and motor shafts, oil country drill pipes, bits and collars, bearing races and rolling elements, bushings, fuel injectors, wind energy shafts, anti-friction bearings, artillery and mortar bodies, and other applications. It also provides custom-make precision steel components. It offers its products and services to the automotive, energy, industrial equipment, mining, construction, rail, aerospace and defense, heavy truck, agriculture, and power generation sectors. The company was formerly known as TimkenSteel Corporation and changed its name to Metallus Inc. in February 2024. Metallus Inc. was founded in 1899 and is headquartered in Canton, Ohio.

About Centerra Gold

Centerra Gold Inc., a gold mining company, engages in the acquisition, exploration, development, and operation of gold and copper properties in North America, Turkey, and internationally. The company explores for gold, copper, and molybdenum deposits. Its flagship projects are the 100% owned Mount Milligan gold-copper mine located in British Columbia, Canada; and the Öksüt gold mine located in Turkey. The company was incorporated in 2002 and is based in Toronto, Canada.