Salzgitter (OTCMKTS:SZGPY) & Acerinox (OTCMKTS:ANIOY) Head-To-Head Contrast

Salzgitter (OTCMKTS:SZGPY) and Acerinox (OTCMKTS:ANIOY) are both basic materials companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, risk, valuation and profitability.

Dividends

Salzgitter pays an annual dividend of $0.01 per share and has a dividend yield of 0.4%. Acerinox pays an annual dividend of $0.22 per share and has a dividend yield of 3.5%. Salzgitter pays out -1.2% of its earnings in the form of a dividend. Acerinox pays out 115.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Volatility and Risk

Salzgitter has a beta of 1.46, indicating that its stock price is 46% more volatile than the S&P 500. Comparatively, Acerinox has a beta of 1.2, indicating that its stock price is 20% more volatile than the S&P 500.

Earnings and Valuation

This table compares Salzgitter and Acerinox”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Salzgitter	$10.83 billion	0.14	-$381.12 million	($0.86)	-3.17
Acerinox	$5.86 billion	N/A	$243.41 million	$0.19	33.42

Acerinox has lower revenue, but higher earnings than Salzgitter. Salzgitter is trading at a lower price-to-earnings ratio than Acerinox, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Salzgitter and Acerinox’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Salzgitter	-4.45%	-9.40%	-4.03%
Acerinox	1.59%	3.54%	1.41%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Salzgitter and Acerinox, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Salzgitter	3	1	0	1	1.80
Acerinox	0	1	3	0	2.75

Summary

Acerinox beats Salzgitter on 9 of the 13 factors compared between the two stocks.

About Salzgitter

Salzgitter AG, together with its subsidiaries, engages in steel and technology businesses worldwide. It operates through four segments: Steel Production, Steel Processing, Trading, and Technology. The Steel Production segment manufactures steel and special steels, such as hot-rolled wide strip, steel sheet, sections, tailored blanks, as well as scrap trading. The Steel Processing segment produces various high-grade heavy plates; and manufactures line pipes, HFI-welded tubes, and precision and stainless-steel tubes. The Trading segment operates a European sales network, as well as trading companies and agencies worldwide. The Technology segment engages in the provision of machinery and plants for the filling and packaging of beverages, as well as special machinery engineering for shoe manufacturing and elastomer production. The company also provides IT, facility management, logistics, automotive engineering, and research and development services, as well as supplies raw materials. The company was founded in 1858 and is headquartered in Salzgitter, Germany.

About Acerinox

Acerinox, S.A., together with its subsidiaries, manufactures, process, and markets stainless steel products in Spain, the United States, Africa, Asia, Rest of Europe, and internationally. It operates through Stainless steel, and High-performance Alloys segments. The company offers flat products, including hot and cold rolled coils and sheets, strips, flat bars, and discs, as well as engraved coil and sheet, black coil, slabs, circles, billets, and plates. It provides long products, which include wire and hexagonal wire rods, peeled bars, hot and cold reinforcement bars, black bars, profiles, angles, and steel profiles, as well as stainless steel, color coated, and reinforcement wires. In additions, it offers stainless steel products, such as austenitic, ferritic, duplex, and martensitic. Acerinox, S.A. was incorporated in 1970 and is headquartered in Madrid, Spain.