ArcelorMittal (NYSE: MT) and Dynamic Materials Corp. (NASDAQ:BOOM) are both basic materials companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, dividends, risk, profitability, analyst recommendations and institutional ownership.
Insider & Institutional Ownership
3.6% of ArcelorMittal shares are held by institutional investors. Comparatively, 86.0% of Dynamic Materials Corp. shares are held by institutional investors. 0.1% of ArcelorMittal shares are held by company insiders. Comparatively, 5.1% of Dynamic Materials Corp. shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Dynamic Materials Corp. pays an annual dividend of $0.08 per share and has a dividend yield of 0.4%. ArcelorMittal does not pay a dividend. Dynamic Materials Corp. pays out -6.0% of its earnings in the form of a dividend.
This table compares ArcelorMittal and Dynamic Materials Corp.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Dynamic Materials Corp.||-10.69%||-1.18%||-0.80%|
Earnings & Valuation
This table compares ArcelorMittal and Dynamic Materials Corp.’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|ArcelorMittal||$61.98 billion||0.48||$7.47 billion||$3.33||8.75|
|Dynamic Materials Corp.||$162.88 million||1.89||$7.00 million||($1.33)||-15.68|
ArcelorMittal has higher revenue and earnings than Dynamic Materials Corp.. Dynamic Materials Corp. is trading at a lower price-to-earnings ratio than ArcelorMittal, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent recommendations for ArcelorMittal and Dynamic Materials Corp., as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Dynamic Materials Corp.||0||0||1||0||3.00|
ArcelorMittal currently has a consensus target price of $31.07, indicating a potential upside of 6.66%. Dynamic Materials Corp. has a consensus target price of $22.00, indicating a potential upside of 5.52%. Given ArcelorMittal’s higher possible upside, equities analysts plainly believe ArcelorMittal is more favorable than Dynamic Materials Corp..
Risk & Volatility
ArcelorMittal has a beta of 2.1, suggesting that its stock price is 110% more volatile than the S&P 500. Comparatively, Dynamic Materials Corp. has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.
ArcelorMittal beats Dynamic Materials Corp. on 9 of the 15 factors compared between the two stocks.
ArcelorMittal S.A. (ArcelorMittal) is a holding company. The Company, together with its subsidiaries, owns and operates steel manufacturing and mining facilities in Europe, North and South America, Asia and Africa. ArcelorMittal operates through five segments, which include NAFTA; Europe; Brazil; Africa and Commonwealth of Independent States (ACIS), and Mining. The NAFTA segment produces flat, long and tubular products. The Brazil segment includes the flat operations of Brazil, and the long and tubular operations of Brazil and neighboring countries. The Europe segment is the flat steel producer in Europe. The ACIS segment produces a combination of flat, long products and tubular products. The Mining segment comprises all mines owned by ArcelorMittal in the Americas, Asia, Europe and Africa. It produces a range of finished and semi-finished steel products (semis).
About Dynamic Materials Corp.
DMC Global Inc., formerly Dynamic Materials Corporation, is a diversified technology company. The Company operates a family of technical product and process businesses serving the energy, industrial and infrastructure markets. The Company’s businesses operate through an international network of manufacturing, distribution and sales facilities. The Company’s segments are NobelClad and DynaEnergetics. The NobelClad segment is engaged in the production of explosion-welded clad metal plates for use in the construction of corrosion resistant industrial processing equipment and specialized transition joints. The DynaEnergetics segment manufactures, markets and sells oilfield perforating equipment and explosives, including detonating cords, detonators, bi-directional boosters and shaped charges, and seismic related explosives and accessories. It owns explosive metalworking and metallic processes, and registered trademarks, including Detaclad, Detacouple, EFTEK, ETJ 2000 and NOBELCLAD.
What are top analysts saying about ArcelorMittal? - Enter your email address in the form below to receive our free daily email newsletter that contains the latest headlines and analysts' recommendations for for ArcelorMittal and related companies.