Reviewing Aperam (OTCMKTS:APEMY) and Labrador Iron Ore Royalty (OTCMKTS:LIFZF)

Aperam (OTCMKTS:APEMY – Get Free Report) and Labrador Iron Ore Royalty (OTCMKTS:LIFZF – Get Free Report) are both basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, risk, earnings, valuation and analyst recommendations.

Profitability

This table compares Aperam and Labrador Iron Ore Royalty’s net margins, return on equity and return on assets.

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Insider & Institutional Ownership

32.4% of Labrador Iron Ore Royalty shares are held by institutional investors. 0.2% of Aperam shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

Aperam pays an annual dividend of $1.86 per share and has a dividend yield of 6.0%. Labrador Iron Ore Royalty pays an annual dividend of $0.50 per share and has a dividend yield of 2.1%. Aperam pays out 23.2% of its earnings in the form of a dividend. Labrador Iron Ore Royalty pays out 21.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Analyst Recommendations

This is a summary of recent recommendations for Aperam and Labrador Iron Ore Royalty, as provided by MarketBeat.

Aperam presently has a consensus price target of $44.87, indicating a potential upside of 44.22%. Labrador Iron Ore Royalty has a consensus price target of $35.33, indicating a potential upside of 48.90%. Given Labrador Iron Ore Royalty’s higher probable upside, analysts plainly believe Labrador Iron Ore Royalty is more favorable than Aperam.

Earnings & Valuation

This table compares Aperam and Labrador Iron Ore Royalty’s top-line revenue, earnings per share and valuation.

Aperam has higher revenue and earnings than Labrador Iron Ore Royalty. Aperam is trading at a lower price-to-earnings ratio than Labrador Iron Ore Royalty, indicating that it is currently the more affordable of the two stocks.

Summary

Aperam beats Labrador Iron Ore Royalty on 8 of the 12 factors compared between the two stocks.

About Aperam

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Aperam S.A., together with its subsidiaries, engages in the production and sale of stainless and specialty steel products worldwide. It operates through four segments: Stainless & Electrical Steel; Services & Solutions; Alloys & Specialties; and Recycling & Renewables. The company offers range of stainless steel products, including grain oriented and non-grain oriented electrical steel products, and specialty alloys. It is also involved in the distribution of its products; and the provision of transformation services that include value added and customized steel solutions. In addition, the company designs, produces, and transforms various specialty alloys and other specific stainless steels in forms, such as bars, semis, cold-rolled strips, wire and wire rods, and plates in a range on grades. Further, it engages in the trading, processing, and recycling of raw materials, such as superalloys and titanium; provides Recyco, an electric arc furnace recycling facility that retrieves dust and sludge to recycle stainless steel raw materials and reduce waste; and produces wood and charcoal from cultivated eucalyptus forests. The company serves customers in aerospace, automotive, catering, construction, household appliances, electrical engineering, industrial processes, medical, and oil and gas industries. It distributes its products through a network of steel service centers, transformation facilities, and sales offices. The company was incorporated in 2010 and is headquartered in Luxembourg City, Luxembourg.

About Labrador Iron Ore Royalty

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Labrador Iron Ore Royalty Corporation, through its subsidiary, Hollinger-Hanna Limited, holds a 15.10% equity interest in Iron Ore Company of Canada (IOC) that produces and processes iron ores at Labrador City, Newfoundland and Labrador. Its primary products include standard and low silica acid, flux, and direct reduction pellets, and iron ore concentrate, as well as seaborne iron ore pellets. The company was formerly known as Labrador Iron Ore Royalty Income Fund and changed its name to Labrador Iron Ore Royalty Corporation in July 2010. Labrador Iron Ore Royalty Corporation is based in Toronto, Canada.

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