SunCoke Energy (NYSE:SXC – Get Free Report) and Iamgold (NYSE:IAG – Get Free Report) are both materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, risk, valuation, analyst recommendations and institutional ownership.
Risk & Volatility
SunCoke Energy has a beta of 1.02, indicating that its share price is 2% more volatile than the S&P 500. Comparatively, Iamgold has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500.
Insider and Institutional Ownership
90.5% of SunCoke Energy shares are held by institutional investors. Comparatively, 47.1% of Iamgold shares are held by institutional investors. 1.7% of SunCoke Energy shares are held by company insiders. Comparatively, 0.2% of Iamgold 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.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SunCoke Energy | $1.84 billion | 0.44 | -$44.20 million | ($0.64) | -14.98 |
| Iamgold | $2.85 billion | 3.93 | $664.40 million | $1.98 | 9.94 |
Iamgold has higher revenue and earnings than SunCoke Energy. SunCoke Energy is trading at a lower price-to-earnings ratio than Iamgold, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent ratings and price targets for SunCoke Energy and Iamgold, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SunCoke Energy | 1 | 1 | 0 | 0 | 1.50 |
| Iamgold | 0 | 3 | 5 | 2 | 2.90 |
SunCoke Energy presently has a consensus target price of $9.00, suggesting a potential downside of 6.13%. Iamgold has a consensus target price of $21.83, suggesting a potential upside of 10.91%. Given Iamgold’s stronger consensus rating and higher possible upside, analysts clearly believe Iamgold is more favorable than SunCoke Energy.
Profitability
This table compares SunCoke Energy and Iamgold’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SunCoke Energy | -2.88% | 6.37% | 2.28% |
| Iamgold | 31.40% | 28.97% | 20.87% |
Summary
Iamgold beats SunCoke Energy on 13 of the 15 factors compared between the two stocks.
About SunCoke Energy
SunCoke Energy, Inc. operates as an independent producer of coke in the Americas and Brazil. The company operates through three segments: Domestic Coke, Brazil Coke, and Logistics. It offers metallurgical and thermal coal. The company also provides handling and/or mixing services to steel, coke, electric utility, coal producing, and other manufacturing based customers. In addition, it owns and operates cokemaking facilities in the United States and Brazil. The company was founded in 1960 and is headquartered in Lisle, Illinois.
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.
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