Reviewing ZK International Group (NASDAQ:ZKIN) and ArcelorMittal (NYSE:MT)

ArcelorMittal (NYSE:MT) and ZK International Group (NASDAQ:ZKIN) are both basic materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, valuation, analyst recommendations, profitability, earnings, dividends and institutional ownership.

Institutional and Insider Ownership

9.3% of ArcelorMittal shares are held by institutional investors. Comparatively, 0.3% of ZK International Group shares are held by institutional investors. 0.1% of ArcelorMittal shares are held by company insiders. Comparatively, 29.8% of ZK International Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

ArcelorMittal has a beta of 1.58, suggesting that its stock price is 58% more volatile than the S&P 500. Comparatively, ZK International Group has a beta of 2.71, suggesting that its stock price is 171% more volatile than the S&P 500.

Earnings & Valuation

This table compares ArcelorMittal and ZK International Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ArcelorMittal	$62.44 billion	0.61	$1.34 billion	$3.36	13.74
ZK International Group	$108.20 million	0.09	-$2.78 million	N/A	N/A

ArcelorMittal has higher revenue and earnings than ZK International Group.

Profitability

This table compares ArcelorMittal and ZK International Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ArcelorMittal	4.23%	4.94%	2.84%
ZK International Group	N/A	N/A	N/A

Analyst Recommendations

This is a summary of current ratings for ArcelorMittal and ZK International Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ArcelorMittal	0	7	3	0	2.30
ZK International Group	1	0	0	0	1.00

ArcelorMittal currently has a consensus target price of $38.98, suggesting a potential downside of 15.59%. Given ArcelorMittal’s stronger consensus rating and higher possible upside, equities research analysts clearly believe ArcelorMittal is more favorable than ZK International Group.

Summary

ArcelorMittal beats ZK International Group on 10 of the 12 factors compared between the two stocks.

About ArcelorMittal

ArcelorMittal S.A., together with its subsidiaries, operates as integrated steel and mining companies in the United States, Europe, and internationally. It offers semi-finished flat products, including slabs; finished flat products comprising plates, hot- and cold-rolled coils and sheets, hot-dipped and electro-galvanized coils and sheets, tinplate, and color coated coils and sheets; semi-finished long products, such as blooms and billets; finished long products consisting of bars, wire-rods, structural sections, rails, sheet piles, and wire-products; and seamless and welded pipes and tubes. The company also provides mining products, such as iron ore lumps, fines, concentrates, pellets, and sinter feeds; and coking coal. It sells its products to various customers in the automotive, appliance, engineering, construction, energy, and machinery industries through a centralized marketing organization, as well as distributors. The company has iron ore mining activities in Brazil, Bosnia, Canada, Liberia, Mexico, South Africa, and Ukraine. ArcelorMittal S.A. was founded in 1976 and is headquartered in Luxembourg City, Luxembourg.

About ZK International Group

ZK International Group Co., Ltd., through its subsidiaries, engages in the designing, producing, and selling double-press thin-walled stainless steel, carbon steel, and single-press tubes and fittings in the People's Republic of China. It offers carbon and stainless steel strips; carbon and stainless steel pipes; light gauge stainless steel pipes; pipe connections and fittings; and couplings, unions, adapters, caps, plug pipes, elbows, three-way fittings, tees, cross, side-inlet elbows, wyes, reducers, bushings, pipe fasteners, and pipe flanges. The company also provides stainless steel band, copper strip, valve, light industry machinery and equipment, and other stainless steel products. Its products are used in various applications, including water and gas transmission within urban infrastructural development, residential housing development, food and beverage production, oil and gas exploitation, and agricultural irrigation. The company also exports its products to Europe, Africa, and Southeast Asia. ZK International Group Co., Ltd. was incorporated in 2015 and is based in Wenzhou, the People's Republic of China.