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

Analyst Recommendations

This is a breakdown of recent recommendations for Cliffs Natural Resources and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cliffs Natural Resources 2 3 3 0 2.13
Cliffs Natural Resources Competitors 289 835 945 29 2.34

Cliffs Natural Resources presently has a consensus price target of $9.00, indicating a potential upside of 31.58%. As a group, “Steel” companies have a potential upside of 4.28%. Given Cliffs Natural Resources’ higher possible upside, equities research analysts plainly believe Cliffs Natural Resources is more favorable than its rivals.

Earnings & Valuation

This table compares Cliffs Natural Resources and its rivals gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Cliffs Natural Resources $2.34 billion $480.50 million 31.09
Cliffs Natural Resources Competitors $7.78 billion $1.01 billion 35.47

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

Insider and Institutional Ownership

58.3% of Cliffs Natural Resources shares are held by institutional investors. Comparatively, 52.1% of shares of all “Steel” companies are held by institutional investors. 0.5% of Cliffs Natural Resources shares are held by company insiders. Comparatively, 12.1% of shares of all “Steel” companies are held 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.

Volatility & Risk

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

Profitability

This table compares Cliffs Natural Resources and its rivals’ 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%

Summary

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

Cliffs Natural Resources Company Profile

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.

Receive News & Ratings for Cliffs Natural Resources Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Cliffs Natural Resources Inc. and related companies with MarketBeat.com's FREE daily email newsletter.