Comparing ThyssenKrupp (OTCMKTS:TYEKF) & ArcelorMittal (NYSE:MT)

ArcelorMittal (NYSE:MT) and ThyssenKrupp (OTCMKTS:TYEKF) are both basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, valuation, profitability and institutional ownership.

Valuation & Earnings

This table compares ArcelorMittal and ThyssenKrupp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ArcelorMittal	$62.44 billion	0.64	$1.34 billion	$3.36	15.24
ThyssenKrupp	$36.31 billion	0.21	$514.57 million	$1.65	7.27

ArcelorMittal has higher revenue and earnings than ThyssenKrupp. ThyssenKrupp is trading at a lower price-to-earnings ratio than ArcelorMittal, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and target prices for ArcelorMittal and ThyssenKrupp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ArcelorMittal	0	6	5	0	2.45
ThyssenKrupp	0	0	0	0	0.00

ArcelorMittal currently has a consensus target price of $40.98, indicating a potential downside of 20.00%. Given ArcelorMittal’s stronger consensus rating and higher possible upside, research analysts plainly believe ArcelorMittal is more favorable than ThyssenKrupp.

Institutional and Insider Ownership

9.3% of ArcelorMittal shares are owned by institutional investors. 0.1% of ArcelorMittal shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility & Risk

ArcelorMittal has a beta of 1.52, meaning that its stock price is 52% more volatile than the S&P 500. Comparatively, ThyssenKrupp has a beta of 0.69, meaning that its stock price is 31% less volatile than the S&P 500.

Profitability

This table compares ArcelorMittal and ThyssenKrupp’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%
ThyssenKrupp	2.86%	9.32%	3.33%

Summary

ArcelorMittal beats ThyssenKrupp on 12 of the 14 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 ThyssenKrupp

thyssenkrupp AG operates as an industrial and technology company in Germany and internationally. It operates through five segments: Automotive Technology, Decarbon Technologies, Materials Services, Steel Europe, and Marine Systems. The Automotive Technology segment offers components, systems, and automation solutions for vehicle manufacturing, such as axle assembly, body in white, camshafts and electric engine components, dampers, dies, springs and stabilizers, crankshafts and conrods, steering, and undercarriages. The Decarbon Technologies segment provides slewing bearings and rings, green ammonia and methanol, chemical and cement plants, high pressure processing, and refinery services, as well as green hydrogen. The Marine System segment manufactures submarines, naval services, and naval surface vessels. The Material Services segment offers 3D-printing/additive manufacturing, alloys, infrastructure project and services, industrial minerals, logistics services, metals, nonferrous metals, plastics, rolled steel, special ores, and stainless steel. The Steel Europe segment manufactures composite materials, electrical steel, hot strips, organic coated strips and sheet, packaging steel, precision steel strip, and sheet and coated products. thyssenkrupp AG was founded in 1811 and is headquartered in Essen, Germany.