SunCoke Energy (NYSE: SXC) and ArcelorMittal (NYSE:MT) are both oils/energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, profitability, dividends, institutional ownership, risk and earnings.

Risk and Volatility

SunCoke Energy has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500. Comparatively, ArcelorMittal has a beta of 2.1, meaning that its share price is 110% more volatile than the S&P 500.

Profitability

This table compares SunCoke Energy and ArcelorMittal’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SunCoke Energy -0.01% 3.27% 0.90%
ArcelorMittal 5.50% 10.52% 4.58%

Valuation & Earnings

This table compares SunCoke Energy and ArcelorMittal’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
SunCoke Energy $1.25 billion 0.48 $226.00 million N/A N/A
ArcelorMittal $61.98 billion 0.44 $7.47 billion $3.33 8.05

ArcelorMittal has higher revenue and earnings than SunCoke Energy.

Analyst Ratings

This is a summary of current recommendations and price targets for SunCoke Energy and ArcelorMittal, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SunCoke Energy 0 0 1 0 3.00
ArcelorMittal 1 1 11 0 2.77

SunCoke Energy presently has a consensus target price of $11.00, suggesting a potential upside of 17.77%. ArcelorMittal has a consensus target price of $31.90, suggesting a potential upside of 18.95%. Given ArcelorMittal’s higher probable upside, analysts clearly believe ArcelorMittal is more favorable than SunCoke Energy.

Insider and Institutional Ownership

90.2% of SunCoke Energy shares are owned by institutional investors. Comparatively, 3.6% of ArcelorMittal shares are owned by institutional investors. 3.9% of SunCoke Energy shares are owned by insiders. Comparatively, 0.1% of ArcelorMittal shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

ArcelorMittal beats SunCoke Energy on 8 of the 13 factors compared between the two stocks.

SunCoke Energy Company Profile

SunCoke Energy, Inc. is a producer of coke in the Americas. The Company’s segments include Domestic Coke, Brazil Coke, Coal Logistics, and Corporate and Other. The Domestic Coke segment consists of its Jewell Coke Company, L.P. (Jewell), Indiana Harbor Coke Company (Indiana Harbor), Haverhill Coke Company LLC (Haverhill), Gateway Energy and Coke Company, LLC (Granite City) and Middletown Coke Company, LLC (Middletown) cokemaking and heat recovery operations. The Brazil Coke segment consists of its operations in Vitoria, Brazil, where the Company operate a cokemaking facility, ArcelorMittal Brasil S.A. The Coal Logistics segment consists of its Convent Marine Terminal (CMT), Kanawha River Terminals, LLC (KRT), SunCoke Lake Terminal, LLC (Lake Terminal) and Dismal River Terminal, LLC (DRT) coal handling and/or mixing service operations. It designs, develops, builds, owns and operates five cokemaking facilities in the United States, as of December 31, 2016.

ArcelorMittal Company Profile

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).

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