Analyzing Cliffs Natural Resources (CLF) & Gibraltar Industries (ROCK)
Cliffs Natural Resources (NYSE: CLF) and Gibraltar Industries (NASDAQ:ROCK) are both basic materials companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, profitability, risk and earnings.
Earnings and Valuation
This table compares Cliffs Natural Resources and Gibraltar Industries’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Cliffs Natural Resources||$2.34 billion||0.91||$480.50 million||$0.22||32.82|
|Gibraltar Industries||$958.80 million||0.97||$109.22 million||$0.71||41.13|
Cliffs Natural Resources has higher revenue and earnings than Gibraltar Industries. Cliffs Natural Resources is trading at a lower price-to-earnings ratio than Gibraltar Industries, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings and target prices for Cliffs Natural Resources and Gibraltar Industries, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Cliffs Natural Resources||3||3||3||0||2.00|
Cliffs Natural Resources currently has a consensus price target of $8.00, indicating a potential upside of 10.80%. Gibraltar Industries has a consensus price target of $34.50, indicating a potential upside of 18.15%. Given Gibraltar Industries’ stronger consensus rating and higher possible upside, analysts plainly believe Gibraltar Industries is more favorable than Cliffs Natural Resources.
This table compares Cliffs Natural Resources and Gibraltar Industries’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Cliffs Natural Resources||2.44%||-13.83%||7.41%|
Volatility and Risk
Cliffs Natural Resources has a beta of 1.7, suggesting that its share price is 70% more volatile than the S&P 500. Comparatively, Gibraltar Industries has a beta of 1.81, suggesting that its share price is 81% more volatile than the S&P 500.
Insider & Institutional Ownership
58.3% of Cliffs Natural Resources shares are owned by institutional investors. 0.5% of Cliffs Natural Resources shares are owned by company insiders. Comparatively, 0.5% of Gibraltar Industries shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Gibraltar Industries beats Cliffs Natural Resources on 8 of the 14 factors compared between the two stocks.
About Cliffs Natural Resources
Cleveland-Cliffs Inc, formerly Cliffs Natural Resources Inc., is a mining and natural resources company. The Company is a supplier of iron ore pellets to the North American steel industry from its mines and pellet plants located in Michigan and Minnesota. The Company’s segments include U.S. Iron Ore and Asia Pacific Iron Ore. The Company is a producer of iron ore pellets, primarily selling production from U.S. Iron Ore to integrated steel companies in the United States, Canada and Mexico. Its Asia Pacific Iron Ore operations are located in Western Australia and consist of its Koolyanobbing operation. The Koolyanobbing operations serve the Asian iron ore markets with direct-shipped fines and lump ore. In addition, the Company operates an iron ore mining complex in Western Australia. In the United States, the Company owned four operational iron ore mines and one indefinitely idled mine.
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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