Labrador Iron Ore Royalty (LIF) Competitors

MEG Energy (TSE:MEG) and Labrador Iron Ore Royalty (TSE:LIF) are both business services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, institutional ownership, dividends, profitability, media sentiment, analyst recommendations, earnings and valuation.

Do institutionals and insiders hold more shares of MEG or LIF?

44.4% of MEG Energy shares are held by institutional investors. Comparatively, 21.6% of Labrador Iron Ore Royalty shares are held by institutional investors. 0.3% of MEG Energy shares are held by insiders. Comparatively, 0.1% of Labrador Iron Ore Royalty shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Is MEG or LIF a better dividend stock?

MEG Energy pays an annual dividend of C$0.40 per share and has a dividend yield of 1.4%. Labrador Iron Ore Royalty pays an annual dividend of C$2.70 per share and has a dividend yield of 10.0%. MEG Energy pays out 21.2% of its earnings in the form of a dividend. Labrador Iron Ore Royalty pays out 88.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Does the media favor MEG or LIF?

In the previous week, MEG Energy had 4 more articles in the media than Labrador Iron Ore Royalty. MarketBeat recorded 4 mentions for MEG Energy and 0 mentions for Labrador Iron Ore Royalty. MEG Energy's average media sentiment score of 1.03 beat Labrador Iron Ore Royalty's score of 0.00 indicating that MEG Energy is being referred to more favorably in the media.

Company	Overall Sentiment
MEG Energy	Positive
Labrador Iron Ore Royalty	Neutral

Which has preferable earnings & valuation, MEG or LIF?

MEG Energy has higher revenue and earnings than Labrador Iron Ore Royalty. Labrador Iron Ore Royalty is trading at a lower price-to-earnings ratio than MEG Energy, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MEG Energy	C$5.39B	1.34	C$487.47M	C$1.89	14.78
Labrador Iron Ore Royalty	C$208.43M	8.30	C$197.32M	C$3.05	8.81

Do analysts prefer MEG or LIF?

MEG Energy presently has a consensus price target of C$30.61, indicating a potential upside of 9.72%. Labrador Iron Ore Royalty has a consensus price target of C$33.50, indicating a potential upside of 24.54%. Given Labrador Iron Ore Royalty's higher probable upside, analysts plainly believe Labrador Iron Ore Royalty is more favorable than MEG Energy.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MEG Energy	0 Sell rating(s)	3 Hold rating(s)	1 Buy rating(s)	1 Strong Buy rating(s)	2.60
Labrador Iron Ore Royalty	0 Sell rating(s)	3 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	2.00

Is MEG or LIF more profitable?

Labrador Iron Ore Royalty has a net margin of 94.67% compared to MEG Energy's net margin of 9.04%. Labrador Iron Ore Royalty's return on equity of 29.05% beat MEG Energy's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
MEG Energy	9.04%	11.06%	8.96%
Labrador Iron Ore Royalty	94.67%	29.05%	11.52%

Which has more risk & volatility, MEG or LIF?

MEG Energy has a beta of 2.89, indicating that its share price is 189% more volatile than the S&P 500. Comparatively, Labrador Iron Ore Royalty has a beta of 1.1, indicating that its share price is 10% more volatile than the S&P 500.

Summary

MEG Energy beats Labrador Iron Ore Royalty on 12 of the 19 factors compared between the two stocks.