Anglo American (NGLOY) vs. Its Rivals Critical Analysis

Anglo American (OTCMKTS: NGLOY) is one of 53 publicly-traded companies in the “Metal mining” industry, but how does it weigh in compared to its competitors? We will compare Anglo American to similar businesses based on the strength of its profitability, dividends, institutional ownership, risk, valuation, analyst recommendations and earnings.

Profitability

This table compares Anglo American and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Anglo American N/A N/A N/A
Anglo American Competitors -305.24% -10.75% -1.97%

Earnings and Valuation

This table compares Anglo American and its competitors gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Anglo American $28.65 billion $3.17 billion 7.84
Anglo American Competitors $6.71 billion $850.72 million 12.19

Anglo American has higher revenue and earnings than its competitors. Anglo American 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 breakdown of current ratings for Anglo American and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Anglo American 0 0 6 1 3.14
Anglo American Competitors 450 1293 1444 84 2.36

As a group, “Metal mining” companies have a potential upside of 39.87%. Given Anglo American’s competitors higher probable upside, analysts plainly believe Anglo American has less favorable growth aspects than its competitors.

Insider and Institutional Ownership

0.3% of Anglo American shares are held by institutional investors. Comparatively, 23.6% of shares of all “Metal mining” companies are held by institutional investors. 11.4% of shares of all “Metal mining” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

Anglo American has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500. Comparatively, Anglo American’s competitors have a beta of 5.54, meaning that their average share price is 454% more volatile than the S&P 500.

Dividends

Anglo American pays an annual dividend of $0.46 per share and has a dividend yield of 4.5%. Anglo American pays out 35.7% of its earnings in the form of a dividend. As a group, “Metal mining” companies pay a dividend yield of 4.2% and pay out 45.3% of their earnings in the form of a dividend. Anglo American is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Summary

Anglo American beats its competitors on 10 of the 15 factors compared.

About Anglo American

Anglo American plc, together with its subsidiaries, engages in exploring, mining, and processing various metals and minerals worldwide. The company explores for rough and polished diamonds, copper, platinum group metals, metallurgical and thermal coal, and nickel; and iron and manganese ores, as well as alloys. Anglo American plc was founded in 1917 and is headquartered in London, the United Kingdom.

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