AngloGold Ashanti (NYSE:AU – Get Free Report) and National Steel (NYSE:SID – Get Free Report) are both materials companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, valuation, profitability, analyst recommendations and risk.
Valuation & Earnings
This table compares AngloGold Ashanti and National Steel”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| AngloGold Ashanti | $9.89 billion | 4.67 | $2.64 billion | $7.46 | 12.26 |
| National Steel | $8.02 billion | 0.18 | -$358.62 million | ($0.34) | -3.25 |
AngloGold Ashanti has higher revenue and earnings than National Steel. National Steel is trading at a lower price-to-earnings ratio than AngloGold Ashanti, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for AngloGold Ashanti and National Steel, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| AngloGold Ashanti | 0 | 2 | 6 | 2 | 3.00 |
| National Steel | 3 | 0 | 0 | 0 | 1.00 |
AngloGold Ashanti presently has a consensus target price of $120.14, suggesting a potential upside of 31.38%. National Steel has a consensus target price of $1.40, suggesting a potential upside of 26.70%. Given AngloGold Ashanti’s stronger consensus rating and higher possible upside, equities analysts plainly believe AngloGold Ashanti is more favorable than National Steel.
Profitability
This table compares AngloGold Ashanti and National Steel’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| AngloGold Ashanti | 32.19% | 38.77% | 25.72% |
| National Steel | -5.26% | -14.90% | -2.38% |
Risk and Volatility
AngloGold Ashanti has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500. Comparatively, National Steel has a beta of 1.55, suggesting that its stock price is 55% more volatile than the S&P 500.
Insider & Institutional Ownership
36.1% of AngloGold Ashanti shares are owned by institutional investors. 0.0% of National Steel shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Summary
AngloGold Ashanti beats National Steel on 13 of the 15 factors compared between the two stocks.
About AngloGold Ashanti
AngloGold Ashanti plc operates as a gold mining company in Africa, Australia, and the Americas. The company primarily explores for gold, as well as produces silver and sulphuric acid as by-products. Its flagship property is a 100% owned Geita mine located in the Lake Victoria goldfields of the Mwanza region in north-western Tanzania. AngloGold Ashanti plc was incorporated in 1944 and is headquartered in Greenwood Village, Colorado.
About National Steel
Companhia Siderúrgica Nacional operates as an integrated steel producer in Brazil and Latin America. It operates through five segments: Steel Industry, Mining, Logistics, Energy, and Cement. The company offers flat steel products, such as hot and cold rolled, galvanized, galvalume, pre-painted, and metal sheets products; coil, sheets, and derivatives; tiles and derivatives, pipes, and profiles; long steel products; steel packaging solutions for the food industry; chemical packaging solution; and carbochemical products. It also provides steel cutting services; produces and sells cement; operates railway and port facilities; and generates electric power from its thermoelectric co-generation and hydroelectric power plants. In addition, the company explores for iron ore reserves at Casa de Pedra and Engenho mines located in the city of Congonhas; and limestone and dolomite at the Bocaina mine located in the city of Arcos in the state of Minas Gerais, Brazil, as well as produces tin. Companhia Siderúrgica Nacional was founded in 1941 and is headquartered in São Paulo, Brazil.
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