STLC vs. CIA, LIF, ASTL, TSL, CMC, TRQ, WFG, IPL, YRI, and CS
Should you be buying Stelco stock or one of its competitors? The main competitors of Stelco include Champion Iron (CIA), Labrador Iron Ore Royalty (LIF), Algoma Steel Group (ASTL), Tree Island Steel (TSL), Commercial Metals (CMC), Turquoise Hill Resources (TRQ), West Fraser Timber (WFG), Inter Pipeline (IPL), Yamana Gold (YRI), and Capstone Copper (CS). These companies are all part of the "basic materials" sector.
Stelco (TSE:STLC) and Champion Iron (TSE:CIA) are both mid-cap basic materials companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, institutional ownership, community ranking, valuation, risk, analyst recommendations, media sentiment, earnings and profitability.
22.5% of Stelco shares are owned by institutional investors. Comparatively, 45.0% of Champion Iron shares are owned by institutional investors. 44.3% of Stelco shares are owned by insiders. Comparatively, 11.8% of Champion Iron shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
In the previous week, Champion Iron had 14 more articles in the media than Stelco. MarketBeat recorded 14 mentions for Champion Iron and 0 mentions for Stelco. Champion Iron's average media sentiment score of 0.90 beat Stelco's score of 0.00 indicating that Champion Iron is being referred to more favorably in the news media.
Champion Iron received 131 more outperform votes than Stelco when rated by MarketBeat users. Likewise, 71.78% of users gave Champion Iron an outperform vote while only 43.64% of users gave Stelco an outperform vote.
Champion Iron has a net margin of 17.92% compared to Stelco's net margin of 7.49%. Champion Iron's return on equity of 23.32% beat Stelco's return on equity.
Champion Iron has lower revenue, but higher earnings than Stelco. Stelco is trading at a lower price-to-earnings ratio than Champion Iron, indicating that it is currently the more affordable of the two stocks.
Stelco has a beta of 2.4, suggesting that its share price is 140% more volatile than the S&P 500. Comparatively, Champion Iron has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500.
Stelco pays an annual dividend of C$2.00 per share and has a dividend yield of 5.0%. Champion Iron pays an annual dividend of C$0.20 per share and has a dividend yield of 3.4%. Stelco pays out 49.5% of its earnings in the form of a dividend. Champion Iron pays out 35.1% 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.
Stelco currently has a consensus target price of C$50.61, suggesting a potential upside of 27.42%. Champion Iron has a consensus target price of C$8.17, suggesting a potential upside of 37.25%. Given Champion Iron's stronger consensus rating and higher probable upside, analysts clearly believe Champion Iron is more favorable than Stelco.
Summary
Champion Iron beats Stelco on 14 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding STLC and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of TSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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