Iamgold (NYSE:IAG – Get Free Report) and ArcelorMittal (NYSE:MT – Get Free Report) are both large-cap materials companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, profitability, dividends, analyst recommendations, valuation and institutional ownership.
Institutional & Insider Ownership
47.1% of Iamgold shares are held by institutional investors. Comparatively, 9.3% of ArcelorMittal shares are held by institutional investors. 0.2% of Iamgold shares are held by company insiders. Comparatively, 0.1% of ArcelorMittal shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Risk & Volatility
Iamgold has a beta of 1.39, meaning that its share price is 39% more volatile than the S&P 500. Comparatively, ArcelorMittal has a beta of 1.55, meaning that its share price is 55% more volatile than the S&P 500.
Profitability
This table compares Iamgold and ArcelorMittal’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Iamgold | 34.29% | 28.65% | 21.26% |
| ArcelorMittal | 1.64% | 4.89% | 2.82% |
Earnings & Valuation
This table compares Iamgold and ArcelorMittal”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Iamgold | $2.85 billion | 3.40 | $664.40 million | $2.26 | 7.58 |
| ArcelorMittal | $61.35 billion | 0.81 | $3.15 billion | $1.35 | 47.69 |
ArcelorMittal has higher revenue and earnings than Iamgold. Iamgold is trading at a lower price-to-earnings ratio than ArcelorMittal, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings and price targets for Iamgold and ArcelorMittal, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Iamgold | 1 | 2 | 6 | 1 | 2.70 |
| ArcelorMittal | 0 | 7 | 8 | 0 | 2.53 |
Iamgold presently has a consensus target price of $22.71, indicating a potential upside of 32.60%. ArcelorMittal has a consensus target price of $74.55, indicating a potential upside of 15.78%. Given Iamgold’s stronger consensus rating and higher possible upside, research analysts clearly believe Iamgold is more favorable than ArcelorMittal.
Summary
Iamgold beats ArcelorMittal on 10 of the 15 factors compared between the two stocks.
About Iamgold
IAMGOLD Corporation is a Canadian gold mining company that explores for, develops and operates mineral properties. Its business is focused primarily on producing gold, with operations in Canada and Burkina Faso. The company’s assets include the Côté Gold mine in Ontario, the Westwood mine in Quebec and the Essakane mine in Burkina Faso. IAMGOLD also conducts exploration and development work to support its operating mines and assess potential mineral resources. Founded in 1990, IAMGOLD has built a portfolio spanning North America and West Africa.
About ArcelorMittal
ArcelorMittal is a global steel and mining company that produces steel products for customers across industries including automotive, construction, energy, appliances and packaging. Its offerings include flat and long steel products, as well as iron ore and metallurgical coal used in steelmaking. The company operates across the Americas, Europe and other regions, combining mining and steelmaking activities with research and product development. ArcelorMittal was formed in 2006 through the merger of Arcelor and Mittal Steel.
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