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.
Champion Iron (TSE:CIA) and Stelco (TSE:STLC) are both mid-cap basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their media sentiment, profitability, risk, community ranking, institutional ownership, earnings, analyst recommendations, valuation and dividends.
Champion Iron pays an annual dividend of C$0.20 per share and has a dividend yield of 3.1%. Stelco pays an annual dividend of C$2.00 per share and has a dividend yield of 4.9%. Champion Iron pays out 35.1% of its earnings in the form of a dividend. Stelco pays out 49.5% 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.
Champion Iron has a net margin of 17.92% compared to Champion Iron's net margin of 7.49%. Stelco's return on equity of 23.32% beat Champion Iron's return on equity.
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.
45.0% of Champion Iron shares are held by institutional investors. Comparatively, 22.5% of Stelco shares are held by institutional investors. 11.8% of Champion Iron shares are held by company insiders. Comparatively, 44.3% of Stelco shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Champion Iron has higher earnings, but lower revenue 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.
In the previous week, Stelco had 2 more articles in the media than Champion Iron. MarketBeat recorded 2 mentions for Stelco and 0 mentions for Champion Iron. Stelco's average media sentiment score of 1.20 beat Champion Iron's score of 0.00 indicating that Champion Iron is being referred to more favorably in the media.
Champion Iron currently has a consensus price target of C$8.13, indicating a potential upside of 25.19%. Stelco has a consensus price target of C$50.61, indicating a potential upside of 24.97%. Given Stelco's stronger consensus rating and higher probable upside, equities analysts plainly believe Champion Iron is more favorable than Stelco.
Champion Iron has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500. Comparatively, Stelco has a beta of 2.4, indicating that its share price is 140% more volatile than the S&P 500.
Summary
Champion Iron beats Stelco on 13 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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