Metallurgical Corp. of China (MLLUY) and Its Peers Critical Analysis

Risk and Volatility

Metallurgical Corp. of China has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500. Comparatively, Metallurgical Corp. of China’s peers have a beta of 1.26, meaning that their average share price is 26% more volatile than the S&P 500.

Valuation and Earnings

This table compares Metallurgical Corp. of China and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Metallurgical Corp. of China	$76.79 billion	$938.36 million	5.29
Metallurgical Corp. of China Competitors	$8.28 billion	$330.08 million	32.28

Metallurgical Corp. of China has higher revenue and earnings than its peers. Metallurgical Corp. of China is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Dividends

Metallurgical Corp. of China pays an annual dividend of $0.11 per share and has a dividend yield of 2.8%. Metallurgical Corp. of China pays out 15.1% of its earnings in the form of a dividend. As a group, “ENGINRG/R&D SVS” companies pay a dividend yield of 0.5% and pay out 19.7% of their earnings in the form of a dividend. Metallurgical Corp. of China is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

69.8% of shares of all “ENGINRG/R&D SVS” companies are owned by institutional investors. 5.9% of shares of all “ENGINRG/R&D SVS” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Metallurgical Corp. of China and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Metallurgical Corp. of China	N/A	N/A	N/A
Metallurgical Corp. of China Competitors	6.89%	32.27%	7.19%

Summary

Metallurgical Corp. of China peers beat Metallurgical Corp. of China on 7 of the 11 factors compared.

Metallurgical Corp. of China Company Profile

Metallurgical Corporation of China Ltd., together with its subsidiaries, engages in the engineering contracting, property development, equipment manufacture, and resource development businesses in China and internationally. The company’s Engineering Contracting segment offers engineering, construction, and other related contracting services for metallurgical and non-metallurgical projects. Its Property Development segment develops and sells residential and commercial properties, and housing properties; and develops land. The company’s Equipment Manufacturing segment engages in the development and production of metallurgical equipment, steel structures, and other metal products. Its Resource Development segment is involved in the development, mining, and processing of mineral resources; and the production of nonferrous metals and polysilicon. The company was founded in 2008 and is based in Beijing, the People’s Republic of China.