Mesabi Trust (NYSE:MSB) vs. Alderon Iron Ore (OTCMKTS:AXXDF) Critical Review

Mesabi Trust (NYSE:MSB) and Alderon Iron Ore (OTCMKTS:AXXDF) are both basic materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.

Earnings and Valuation

This table compares Mesabi Trust and Alderon Iron Ore”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mesabi Trust	$98.60 million	4.18	$93.27 million	$7.07	4.45
Alderon Iron Ore	N/A	N/A	N/A	N/A	N/A

Mesabi Trust has higher revenue and earnings than Alderon Iron Ore.

Analyst Ratings

This is a summary of recent recommendations for Mesabi Trust and Alderon Iron Ore, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mesabi Trust	0	0	1	0	3.00
Alderon Iron Ore	0	0	0	0	0.00

Given Alderon Iron Ore’s higher probable upside, analysts clearly believe Alderon Iron Ore is more favorable than Mesabi Trust.

Profitability

This table compares Mesabi Trust and Alderon Iron Ore’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mesabi Trust	96.44%	230.41%	145.75%
Alderon Iron Ore	N/A	N/A	N/A

Summary

Mesabi Trust beats Alderon Iron Ore on 6 of the 7 factors compared between the two stocks.

About Mesabi Trust

Mesabi Trust, a royalty trust, engages in iron ore mining business in the United States. Mesabi Trust was founded in 1961 and is based in New York, New York.

About Alderon Iron Ore

Alderon Iron Ore Corp. engages in the acquisition, exploration, and development of mineral properties. Its principal asset is the Kami iron ore project that comprises 283 claim units covering an area of 7,075 hectares located in Western Labrador, Canada. The company was formerly known as Alderon Resource Corp. and changed its name to Alderon Iron Ore Corp. in September 2011. Alderon Iron Ore Corp. was incorporated in 1978 and is headquartered in Vancouver, Canada.