Head to Head Comparison: Outokumpu (OTCMKTS:OUTKY) and Iamgold (NYSE:IAG)

Iamgold (NYSE:IAG) and Outokumpu (OTCMKTS:OUTKY) are both materials companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.

Insider and Institutional Ownership

47.1% of Iamgold shares are owned by institutional investors. 0.2% of Iamgold shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Iamgold and Outokumpu’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Iamgold	31.40%	28.97%	20.87%
Outokumpu	-1.48%	-2.38%	-1.41%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Iamgold and Outokumpu, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Iamgold	0	3	5	2	2.90
Outokumpu	0	4	2	0	2.33

Iamgold currently has a consensus target price of $21.83, suggesting a potential upside of 6.94%. Given Iamgold’s stronger consensus rating and higher possible upside, equities analysts plainly believe Iamgold is more favorable than Outokumpu.

Volatility and Risk

Iamgold has a beta of 1.4, suggesting that its share price is 40% more volatile than the S&P 500. Comparatively, Outokumpu has a beta of 0.72, suggesting that its share price is 28% less volatile than the S&P 500.

Valuation and Earnings

This table compares Iamgold and Outokumpu”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Iamgold	$2.85 billion	4.07	$664.40 million	$1.98	10.31
Outokumpu	$6.19 billion	0.46	-$155.00 million	($0.10)	-29.90

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

Summary

Iamgold beats Outokumpu on 14 of the 15 factors compared between the two stocks.

About Iamgold

IAMGOLD Corporation, through its subsidiaries, operates as an intermediate gold producer and developer in Canada and Burkina Faso. It owns 100% interest in the Westwood project that covers an area of 1,925 hectare and located in Quebec; a 60% interest in the Côté gold project, which covers an area of 596 square kilometer located in Ontario, Canada; and a 90% interests in the Essakane project that covers an area of 274,000 square kilometer situated in Burkina Faso. IAMGOLD Corporation was incorporated in 1990 and is headquartered in Toronto, Canada.

About Outokumpu

Outokumpu Oyj produces and sells various stainless steel products in Finland, other European countries, North America, the Asia-Pacific, and internationally. The company operates through three segments: Europe, Americas, and Ferrochrome. It offers cold rolled coils, strips, and sheets; hot rolled coils, strips, and plates; quarto plates; precision strips; and specialized components, such as welded stainless-steel I-beams, H-beams, hollow-section tubes, bent profiles, structural sections, hardened and customized press plates, suction roll shells, and blancs and disks. The company also provides stainless steel powder which includes Supra 316L, Dura 17-4PH, Ultra 904L, Therma 253MA, Dura 4116, and Ni-free austenitic stainless steel powder; and nickel-based alloys. Its products are used in various applications, including commercial kitchen, cooking, food industry, and home appliances; automotive and transportation; building and infrastructure; energy; marine; and heavy industries. The company was founded in 1910 and is headquartered in Helsinki, Finland.