Head-To-Head Contrast: ThyssenKrupp (OTCMKTS:TKAMY) and ArcelorMittal (NYSE:MT)

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

Volatility & Risk

ThyssenKrupp has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500. Comparatively, ArcelorMittal has a beta of 1.65, indicating that its share price is 65% more volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ThyssenKrupp	$38.01 billion	0.17	-$1.63 billion	($1.80)	-5.89
ArcelorMittal	$62.44 billion	0.41	$1.34 billion	$1.53	20.27

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.

Profitability

This table compares ThyssenKrupp and ArcelorMittal’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ThyssenKrupp	-3.04%	-9.70%	-3.53%
ArcelorMittal	1.98%	4.11%	2.41%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for ThyssenKrupp and ArcelorMittal, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ThyssenKrupp	1	0	0	2	3.00
ArcelorMittal	0	3	4	0	2.57

ArcelorMittal has a consensus price target of $32.95, suggesting a potential upside of 6.22%. Given ArcelorMittal’s higher probable upside, analysts plainly believe ArcelorMittal is more favorable than ThyssenKrupp.

Dividends

ThyssenKrupp pays an annual dividend of $0.10 per share and has a dividend yield of 0.9%. ArcelorMittal pays an annual dividend of $0.47 per share and has a dividend yield of 1.5%. ThyssenKrupp pays out -5.6% of its earnings in the form of a dividend. ArcelorMittal pays out 30.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Insider & Institutional Ownership

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

Summary

ArcelorMittal beats ThyssenKrupp on 14 of the 17 factors compared between the two stocks.

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.

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.