Contrasting Aperam (APEMY) & Its Competitors

Aperam (OTCMKTS:APEMY) is one of 1,984 publicly-traded companies in the “Metals & Mining” industry, but how does it contrast to its peers? We will compare Aperam to similar businesses based on the strength of its earnings, risk, valuation, dividends, institutional ownership, profitability and analyst recommendations.

Risk and Volatility

Aperam has a beta of 1.4, suggesting that its share price is 40% more volatile than the S&P 500. Comparatively, Aperam’s peers have a beta of 0.96, suggesting that their average share price is 4% less volatile than the S&P 500.

Profitability

This table compares Aperam and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Aperam	2.53%	3.21%	1.61%
Aperam Competitors	-1,161,736,352,322,426,600.00%	-52.87%	-2.06%

Dividends

Aperam pays an annual dividend of $1.96 per share and has a dividend yield of 5.1%. Aperam pays out 80.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Metals & Mining” companies pay a dividend yield of 10.0% and pay out 10.8% of their earnings in the form of a dividend. Aperam lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Recommendations

This is a summary of current ratings and price targets for Aperam and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aperam	1	3	3	0	2.29
Aperam Competitors	6414	22620	32329	1801	2.47

As a group, “Metals & Mining” companies have a potential upside of 24.93%. Given Aperam’s peers stronger consensus rating and higher possible upside, analysts plainly believe Aperam has less favorable growth aspects than its peers.

Earnings & Valuation

This table compares Aperam and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Aperam	$6.88 billion	$10.18 million	15.82
Aperam Competitors	$4.78 billion	$278.94 million	-26.11

Aperam has higher revenue, but lower earnings than its peers. Aperam is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Insider & Institutional Ownership

15.9% of shares of all “Metals & Mining” companies are owned by institutional investors. 0.2% of Aperam shares are owned by company insiders. Comparatively, 17.6% of shares of all “Metals & Mining” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Aperam peers beat Aperam on 9 of the 15 factors compared.

Aperam Company Profile

Aperam is a global producer of stainless and specialty steels, serving customers in industries such as automotive, construction, consumer goods, energy and industrial equipment. Its products include stainless steel, electrical steel and specialty alloys designed for applications that require specific performance or corrosion resistance. The company also provides processing and distribution services, including solutions that tailor steel products to customer requirements. Through its recycling and renewables activities, Aperam collects and processes scrap and works to incorporate recycled materials into its operations.