Comparing Quaterra Resources (OTCMKTS:QTRRF) and Cleveland-Cliffs (OTCMKTS:CLF)

Quaterra Resources (OTCMKTS:QTRRF) and Cleveland-Cliffs (NYSE:CLF) are both basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.

Profitability

This table compares Quaterra Resources and Cleveland-Cliffs’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Quaterra Resources N/A -7.02% -6.64%
Cleveland-Cliffs 51.54% 786.91% 17.74%

Insider and Institutional Ownership

0.3% of Quaterra Resources shares are owned by institutional investors. Comparatively, 80.6% of Cleveland-Cliffs shares are owned by institutional investors. 1.3% of Cleveland-Cliffs shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

Quaterra Resources has a beta of 2.44, suggesting that its stock price is 144% more volatile than the S&P 500. Comparatively, Cleveland-Cliffs has a beta of 1.82, suggesting that its stock price is 82% more volatile than the S&P 500.

Dividends

Cleveland-Cliffs pays an annual dividend of $0.20 per share and has a dividend yield of 2.0%. Quaterra Resources does not pay a dividend. Cleveland-Cliffs pays out 9.4% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current ratings and price targets for Quaterra Resources and Cleveland-Cliffs, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Quaterra Resources 0 0 0 0 N/A
Cleveland-Cliffs 1 2 7 0 2.60

Cleveland-Cliffs has a consensus target price of $12.67, suggesting a potential upside of 25.91%. Given Cleveland-Cliffs’ higher probable upside, analysts clearly believe Cleveland-Cliffs is more favorable than Quaterra Resources.

Valuation and Earnings

This table compares Quaterra Resources and Cleveland-Cliffs’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Quaterra Resources N/A N/A -$1.42 million N/A N/A
Cleveland-Cliffs $2.33 billion 1.22 $1.13 billion $2.13 4.72

Cleveland-Cliffs has higher revenue and earnings than Quaterra Resources.

Summary

Cleveland-Cliffs beats Quaterra Resources on 10 of the 12 factors compared between the two stocks.

Quaterra Resources Company Profile

Quaterra Resources Inc. operates as a copper exploration and development company primarily in North America. It holds 100% interests in the MacArthur, Yerington, Bear, and Wassuk copper properties located in the Yerington District, Nevada, as well as an option to acquire a 90% interest in the Groundhog copper prospect covering 40,000 acres located to the southwest of Anchorage, Alaska. The company was formerly known as Aquaterre Mineral Development Ltd. and changed its name to Quaterra Resources Inc. in October 1997. Quaterra Resources Inc. was incorporated in 1993 and is headquartered in Vancouver, Canada.

Cleveland-Cliffs Company Profile

Cleveland-Cliffs Inc. operates as an iron ore mining company in the United States. The company operates four iron ore mines in Michigan and Minnesota. It sells its products to integrated steel companies and steel producers in the United States and the Asia Pacific. The company was formerly known as Cliffs Natural Resources Inc. and changed its name to Cleveland-Cliffs Inc. in August 2017. Cleveland-Cliffs Inc. was founded in 1847 and is headquartered in Cleveland, Ohio.

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