ArcelorMittal (NYSE: MT) and Gibraltar Industries (NASDAQ:ROCK) are both basic materials companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, risk, valuation, earnings, dividends and profitability.

Earnings & Valuation

This table compares ArcelorMittal and Gibraltar Industries’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
ArcelorMittal $61.98 billion 0.44 $7.47 billion $3.33 8.03
Gibraltar Industries $958.80 million 0.96 $109.22 million $0.71 40.85

ArcelorMittal has higher revenue and earnings than Gibraltar Industries. ArcelorMittal is trading at a lower price-to-earnings ratio than Gibraltar Industries, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

ArcelorMittal has a beta of 2.1, meaning that its share price is 110% more volatile than the S&P 500. Comparatively, Gibraltar Industries has a beta of 1.81, meaning that its share price is 81% more volatile than the S&P 500.

Insider & Institutional Ownership

3.6% of ArcelorMittal shares are held by institutional investors. 0.1% of ArcelorMittal shares are held by company insiders. Comparatively, 0.5% of Gibraltar Industries shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares ArcelorMittal and Gibraltar Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ArcelorMittal 5.50% 10.52% 4.58%
Gibraltar Industries 2.38% 10.14% 5.09%

Analyst Ratings

This is a summary of recent ratings for ArcelorMittal and Gibraltar Industries, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ArcelorMittal 1 1 11 0 2.77
Gibraltar Industries 0 0 2 0 3.00

ArcelorMittal presently has a consensus price target of $31.90, suggesting a potential upside of 19.31%. Gibraltar Industries has a consensus price target of $34.50, suggesting a potential upside of 18.97%. Given ArcelorMittal’s higher probable upside, analysts plainly believe ArcelorMittal is more favorable than Gibraltar Industries.

Summary

ArcelorMittal beats Gibraltar Industries on 9 of the 14 factors compared between the two stocks.

About ArcelorMittal

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 Gibraltar Industries

Gibraltar Industries, Inc. is a manufacturer and distributor of building products for industrial, transportation infrastructure, residential housing, renewable energy and resource conservation markets. The Company’s segments include Residential Products; Industrial and Infrastructure Products, and Renewable Energy and Conservation. The Residential Products segment services residential housing construction and residential repair and remodeling activity with products including roof and foundation ventilation products, rain dispersion products and roof ventilation accessories. The Industrial and Infrastructure Products segment focuses on a range of markets, including industrial and commercial construction, automotive, airports and energy and power generation markets with products. The Renewable Energy and Conservation segment focuses on the design, engineering, manufacturing and installation of solar racking systems and commercial, institutional and retail greenhouse structures.

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