Financial Review: Acerinox (OTCMKTS:ANIOY) and Barrick Mining (NYSE:B)

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

Risk & Volatility

Barrick Mining has a beta of 0.52, indicating that its stock price is 48% less volatile than the S&P 500. Comparatively, Acerinox has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Barrick Mining	31.60%	16.02%	11.22%
Acerinox	1.93%	5.41%	1.95%

Analyst Recommendations

This is a summary of recent ratings and target prices for Barrick Mining and Acerinox, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Barrick Mining	0	6	15	1	2.77
Acerinox	1	1	3	1	2.67

Barrick Mining presently has a consensus target price of $52.59, suggesting a potential upside of 30.58%. Given Barrick Mining’s stronger consensus rating and higher possible upside, equities analysts clearly believe Barrick Mining is more favorable than Acerinox.

Institutional and Insider Ownership

90.8% of Barrick Mining shares are held by institutional investors. 5.2% of Barrick Mining shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

Barrick Mining pays an annual dividend of $0.70 per share and has a dividend yield of 1.7%. Acerinox pays an annual dividend of $0.22 per share and has a dividend yield of 2.6%. Barrick Mining pays out 18.0% of its earnings in the form of a dividend. Acerinox pays out 81.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Barrick Mining	$16.96 billion	3.87	$4.99 billion	$3.88	10.38
Acerinox	$6.54 billion	0.66	-$45.34 million	$0.27	31.89

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

Summary

Barrick Mining beats Acerinox on 13 of the 16 factors compared between the two stocks.

About Barrick Mining

Barrick Gold Corporation is a sector-leading gold and copper producer.  Its shares trade on the New York Stock Exchange under the symbol GOLD and on the Toronto Stock Exchange under the symbol ABX.
 
In January 2019 Barrick merged with Randgold Resources and in July that year it combined its gold mines in Nevada, USA, with those of Newmont Corporation in a joint venture, Nevada Gold Mines, which is majority-owned and operated by Barrick. Nevada Gold Mines is the world’s largest gold mining complex.  Barrick owns and operates six Tier One gold mines:  Cortez, Carlin and Turquoise Ridge in Nevada, Loulo-Gounkoto in Mali, Kibali in the Democratic Republic of Congo and Pueblo Viejo in the Dominican Republic.
 
It has gold and copper mines and projects in 13 countries in North and South America, Africa, Papua New Guinea and Saudi Arabia. Barrick’s diversified portfolio spans the world’s most prolific gold districts and is focused on high-margin, long life assets.

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.