Analyzing Oceanagold (NYSE:OGC) & Salzgitter (OTCMKTS:SZGPY)

Salzgitter (OTCMKTS:SZGPY) and Oceanagold (NYSE:OGC) are both mid-cap materials companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Salzgitter and Oceanagold, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Salzgitter	0	2	5	0	2.71
Oceanagold	1	0	2	2	3.00

Dividends

Salzgitter pays an annual dividend of $0.01 per share and has a dividend yield of 0.2%. Oceanagold pays an annual dividend of $0.36 per share and has a dividend yield of 1.3%. Salzgitter pays out 8.3% of its earnings in the form of a dividend. Oceanagold pays out 12.3% 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.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Salzgitter	$10.16 billion	0.30	-$83.95 million	$0.12	47.33
Oceanagold	$2.67 billion	2.29	$628.70 million	$2.93	9.47

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Salzgitter	0.65%	1.29%	0.54%
Oceanagold	36.58%	38.74%	28.21%

Summary

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

About Salzgitter

Salzgitter AG is a Germany-based steel and technology group headquartered in Salzgitter. Its businesses include steel production, steel trading, tube manufacturing and technology, serving customers in industries such as automotive, construction, energy and manufacturing. The company produces a range of steel products, including flat and plate steel, and supplies tubes and pipes for industrial applications. Through its technology business, including KHS, Salzgitter also develops filling and packaging systems for the beverage and liquid-food industries.

About Oceanagold

OceanaGold Corporation is an international gold mining company that explores for, develops and operates mineral properties. Gold is its primary product, with copper and silver also produced at some operations. The company’s operating mines include Haile in South Carolina, Didipio in the Philippines, and Macraes and Waihi in New Zealand. Its portfolio spans North America, Southeast Asia and Oceania. Formed in 2003, OceanaGold is headquartered in Vancouver, Canada. Gerard Bond serves as the company’s chief executive officer.