Contrasting Iamgold (NYSE:IAG) & Aperam (OTCMKTS:APEMY)

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

Analyst Ratings

This is a summary of current ratings for Iamgold and Aperam, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Iamgold	0	3	5	2	2.90
Aperam	1	2	3	1	2.57

Iamgold currently has a consensus price target of $21.83, indicating a potential upside of 19.08%. Given Iamgold’s stronger consensus rating and higher probable upside, research analysts plainly believe Iamgold is more favorable than Aperam.

Valuation & Earnings

This table compares Iamgold and Aperam”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Iamgold	$2.85 billion	3.66	$664.40 million	$1.98	9.26
Aperam	$6.88 billion	0.54	$10.18 million	$2.02	25.19

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

Risk & Volatility

Iamgold has a beta of 1.41, suggesting that its stock price is 41% more volatile than the S&P 500. Comparatively, Aperam has a beta of 1.34, suggesting that its stock price is 34% more volatile than the S&P 500.

Profitability

This table compares Iamgold and Aperam’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%
Aperam	2.10%	2.34%	1.17%

Institutional & Insider Ownership

47.1% of Iamgold shares are owned by institutional investors. 0.2% of Iamgold shares are owned by insiders. Comparatively, 0.2% of Aperam shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Iamgold beats Aperam on 11 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 Aperam

Aperam S.A., together with its subsidiaries, produces and sells stainless and specialty steel products worldwide. It operates through four segments: Stainless & Electrical Steel; Services & Solutions; Alloys & Specialties; and Recycling & Renewables. The company offers a range of stainless steel products, including grain oriented and non-grain oriented electrical steel products, and specialty alloys. It is also involved in the management of direct sales of stainless steel products from production facilities; distribution of its products; and the provision of transformation services that include value added and customized steel solutions. In addition, the company designs, produces, and transforms various specialty alloys and other specific stainless steels in forms, such as bars, semis, cold-rolled strips, wire and wire rods, and plates in a range on grades. Further, it engages in the trading, processing, and recycling of raw materials, such as superalloys and titanium; provides Recyco, an electric arc furnace recycling facility that retrieves dust and sludge to recycle stainless steel raw materials and reduce waste; and produces wood and charcoal from cultivated eucalyptus forests. The company serves customers in aerospace, automotive, catering, construction, household appliances, electrical engineering, industrial processes, medical, and oil and gas industries. It distributes its products through a network of steel service centers, transformation facilities, and sales offices. The company was incorporated in 2010 and is headquartered in Luxembourg, Luxembourg.