Fortescue (OTCMKTS:FSUMF – Get Free Report) is one of 1,989 public companies in the “Metals & Mining” industry, but how does it contrast to its peers? We will compare Fortescue to similar companies based on the strength of its dividends, institutional ownership, profitability, analyst recommendations, risk, valuation and earnings.
Dividends
Fortescue pays an annual dividend of $0.20 per share and has a dividend yield of 1.5%. Fortescue pays out 21.4% of its earnings in the form of a dividend. As a group, “Metals & Mining” companies pay a dividend yield of 8.9% and pay out 10.6% of their earnings in the form of a dividend. Fortescue lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.
Institutional and Insider Ownership
15.3% of Fortescue shares are owned by institutional investors. Comparatively, 16.1% of shares of all “Metals & Mining” companies are owned by institutional investors. 17.6% of shares of all “Metals & Mining” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Valuation & Earnings
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Fortescue | N/A | N/A | 13.94 |
| Fortescue Competitors | $4.60 billion | $266.77 million | -20.49 |
Fortescue’s peers have higher revenue and earnings than Fortescue. Fortescue is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
Profitability
This table compares Fortescue and its peers’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Fortescue | N/A | N/A | N/A |
| Fortescue Competitors | -1,155,490,457,955,101,400.00% | -14.48% | -2.08% |
Analyst Ratings
This is a summary of recent recommendations and price targets for Fortescue and its peers, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Fortescue | 0 | 1 | 0 | 0 | 2.00 |
| Fortescue Competitors | 6305 | 22393 | 31988 | 1752 | 2.47 |
As a group, “Metals & Mining” companies have a potential upside of 21.15%. Given Fortescue’s peers stronger consensus rating and higher probable upside, analysts clearly believe Fortescue has less favorable growth aspects than its peers.
Summary
Fortescue peers beat Fortescue on 9 of the 13 factors compared.
About Fortescue
Fortescue Ltd engages in the exploration, development, production, processing, and sale of iron ore in Australia, China, and internationally. It explores for copper, gold, and lithium deposits; and rare earth elements. The company owns and operates the Chichester Hub that includes the Cloudbreak and Christmas Creek mines located in the Chichester ranges; and the Solomon Hub comprising the Firetail, Kings Valley, and Queens Valley mines located in the Hamersley ranges of Pilbara, Western Australia. It also develops and produces the Eliwana mine situated in the Pilbara region of Western Australia. In addition, the company holds a portfolio of properties situated in Argentina, Peru, Chile, and Brazil, as well as Portugal and Kazakhstan. Further, it provides port towage services; owns and operates rail and port facilities; and focuses on producing green energy and green hydrogen, including derivatives comprising green ammonia. The company was formerly known as Fortescue Metals Group Limited and changed its name to Fortescue Ltd in November 2023. Fortescue Ltd was incorporated in 1983 and is headquartered in East Perth, Australia.
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