Cliffs Natural Resources (NYSE: CLF) is one of 28 publicly-traded companies in the “Steel” industry, but how does it weigh in compared to its competitors? We will compare Cliffs Natural Resources to similar businesses based on the strength of its analyst recommendations, profitability, institutional ownership, earnings, valuation, dividends and risk.

Profitability

This table compares Cliffs Natural Resources and its competitors’ 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%
Cliffs Natural Resources Competitors -1,550.91% 3.59% 2.20%

Insider & Institutional Ownership

58.3% of Cliffs Natural Resources shares are owned by institutional investors. Comparatively, 58.1% of shares of all “Steel” companies are owned by institutional investors. 0.5% of Cliffs Natural Resources shares are owned by company insiders. Comparatively, 7.6% of shares of all “Steel” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Cliffs Natural Resources and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Cliffs Natural Resources $2.34 billion $480.50 million 33.64
Cliffs Natural Resources Competitors $7.78 billion $1.01 billion 35.65

Cliffs Natural Resources’ competitors have higher revenue and earnings than Cliffs Natural Resources. Cliffs Natural Resources is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Cliffs Natural Resources and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cliffs Natural Resources 2 3 3 0 2.13
Cliffs Natural Resources Competitors 331 973 1016 37 2.32

Cliffs Natural Resources presently has a consensus target price of $9.00, suggesting a potential upside of 21.62%. As a group, “Steel” companies have a potential upside of 5.46%. Given Cliffs Natural Resources’ higher possible upside, analysts clearly believe Cliffs Natural Resources is more favorable than its competitors.

Risk & Volatility

Cliffs Natural Resources has a beta of 1.65, meaning that its share price is 65% more volatile than the S&P 500. Comparatively, Cliffs Natural Resources’ competitors have a beta of 1.37, meaning that their average share price is 37% more volatile than the S&P 500.

Summary

Cliffs Natural Resources competitors beat Cliffs Natural Resources on 8 of the 13 factors compared.

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.

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