Contrasting Barrick Mining (NYSE:B) & Acerinox (OTCMKTS:ANIOY)

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Acerinox	$6.54 billion	0.72	-$45.34 million	$0.27	34.91
Barrick Mining	$16.96 billion	3.55	$4.99 billion	$3.88	9.53

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.

Risk & Volatility

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

Profitability

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

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

Dividends

Acerinox pays an annual dividend of $0.22 per share and has a dividend yield of 2.3%. Barrick Mining pays an annual dividend of $0.70 per share and has a dividend yield of 1.9%. 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. Barrick Mining pays out 18.0% of its earnings in the form of a dividend.

Insider and Institutional Ownership

90.8% of Barrick Mining shares are held by institutional investors. 0.6% of Barrick Mining shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations for Acerinox and Barrick Mining, as reported by MarketBeat.com.

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

Barrick Mining has a consensus price target of $52.59, suggesting a potential upside of 42.18%. Given Barrick Mining’s stronger consensus rating and higher probable upside, analysts plainly believe Barrick Mining is more favorable than Acerinox.

Summary

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

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.

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.