Cleveland-Cliffs (CLF) versus EXXARO RESOURCE/S (EXXAY) Head to Head Review

Cleveland-Cliffs (NYSE:CLF) and EXXARO RESOURCE/S (OTCMKTS:EXXAY) are both mid-cap basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, risk, dividends, earnings and valuation.

Dividends

Cleveland-Cliffs pays an annual dividend of $0.20 per share and has a dividend yield of 2.0%. EXXARO RESOURCE/S pays an annual dividend of $0.29 per share and has a dividend yield of 2.6%. Cleveland-Cliffs pays out 9.4% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares Cleveland-Cliffs and EXXARO RESOURCE/S’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cleveland-Cliffs $2.33 billion 1.22 $1.13 billion $2.13 4.70
EXXARO RESOURCE/S $1.72 billion 1.87 $450.44 million N/A N/A

Cleveland-Cliffs has higher revenue and earnings than EXXARO RESOURCE/S.

Analyst Ratings

This is a summary of current ratings and target prices for Cleveland-Cliffs and EXXARO RESOURCE/S, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cleveland-Cliffs 1 2 7 0 2.60
EXXARO RESOURCE/S 0 0 0 0 N/A

Cleveland-Cliffs currently has a consensus price target of $12.67, indicating a potential upside of 26.41%. Given Cleveland-Cliffs’ higher probable upside, equities research analysts clearly believe Cleveland-Cliffs is more favorable than EXXARO RESOURCE/S.

Insider & Institutional Ownership

75.6% of Cleveland-Cliffs shares are held by institutional investors. 1.3% of Cleveland-Cliffs shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Cleveland-Cliffs and EXXARO RESOURCE/S’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cleveland-Cliffs 51.54% 786.91% 17.74%
EXXARO RESOURCE/S N/A N/A N/A

Risk and Volatility

Cleveland-Cliffs has a beta of 1.78, suggesting that its stock price is 78% more volatile than the S&P 500. Comparatively, EXXARO RESOURCE/S has a beta of 0.81, suggesting that its stock price is 19% less volatile than the S&P 500.

Summary

Cleveland-Cliffs beats EXXARO RESOURCE/S on 10 of the 13 factors compared between the two stocks.

Cleveland-Cliffs Company Profile

Cleveland-Cliffs Inc. operates as an iron ore mining company in the United States. The company operates four iron ore mines in Michigan and Minnesota. It sells its products to integrated steel companies and steel producers in the United States and the Asia Pacific. The company was formerly known as Cliffs Natural Resources Inc. and changed its name to Cleveland-Cliffs Inc. in August 2017. Cleveland-Cliffs Inc. was founded in 1847 and is headquartered in Cleveland, Ohio.

EXXARO RESOURCE/S Company Profile

Exxaro Resources Limited engages in coal, iron ore investment, pigment manufacturing, renewable energy, and residual base metal businesses in South Africa, Europe, the United States, and Australia. The company operates through Coal; Ferrous; Energy; and Other segments. It produces thermal coal, metallurgical coal, and semi-soft coking coal products primarily in the Waterberg and Mpumalanga regions; offers gas-atomised ferrosilicon for use in separation plants, as well as iron ore; and operates two wind farms. The company was formerly known as Kumba Iron Ore Limited and changed its name to Exxaro Resources Limited in November 2006. The company is based in Pretoria, South Africa.

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