Acerinox (OTCMKTS:ANIOY) versus Eregli Demir ve Çelik Fabrikalari T.A.S. (OTC:ERELY) Head-To-Head Comparison

Acerinox (OTCMKTS:ANIOY) and Eregli Demir ve Çelik Fabrikalari T.A.S. (OTC:ERELY) are both basic materials companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.

Dividends

Acerinox pays an annual dividend of $0.24 per share and has a dividend yield of 4.5%. Eregli Demir ve Çelik Fabrikalari T.A.S. pays an annual dividend of $1.33 per share and has a dividend yield of 15.6%. Acerinox pays out 80.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Eregli Demir ve Çelik Fabrikalari T.A.S. pays out 68.3% of its earnings in the form of a dividend. Eregli Demir ve Çelik Fabrikalari T.A.S. is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Acerinox and Eregli Demir ve Çelik Fabrikalari T.A.S., as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Acerinox	0	0	0	0	N/A
Eregli Demir ve Çelik Fabrikalari T.A.S.	0	1	0	0	2.00

Profitability

This table compares Acerinox and Eregli Demir ve Çelik Fabrikalari T.A.S.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Acerinox	1.13%	8.99%	3.63%
Eregli Demir ve Çelik Fabrikalari T.A.S.	N/A	N/A	N/A

Valuation & Earnings

This table compares Acerinox and Eregli Demir ve Çelik Fabrikalari T.A.S.’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Acerinox	$7.15 billion	0.37	$246.90 million	$0.30	17.87
Eregli Demir ve Çelik Fabrikalari T.A.S.	N/A	N/A	N/A	$1.95	4.38

Acerinox has higher revenue and earnings than Eregli Demir ve Çelik Fabrikalari T.A.S.. Eregli Demir ve Çelik Fabrikalari T.A.S. is trading at a lower price-to-earnings ratio than Acerinox, indicating that it is currently the more affordable of the two stocks.

Summary

Acerinox beats Eregli Demir ve Çelik Fabrikalari T.A.S. on 5 of the 8 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 Eregli Demir ve Çelik Fabrikalari T.A.S.

Eregli Demir ve Çelik Fabrikalari T.A.S., together with its subsidiaries, produces and sells iron and steel rolled products, alloyed and non-alloyed iron, steel and pig iron castings, cast and pressed products, coke, and by-products in Turkey and internationally. Its flat products include hot rolled flat steel products, cold-rolled flat steel products, and galvanized/galvanealed flat steel products; and tin/chrome coated flat steel products used in metal packaging industry. The company also provides various byproducts, including motor benzole, pure benzole, toluol, xylol, crude tar, ammonium sulphate, iron sulphate, and granulated high furnace slag. In addition, it offers port services, such as loading and unloading, maritime, third party, warehouse, liquid and solid waste collection, maritime police, and customs and customs enforcement services. Further, the company engages in renewable energy production, recycling, and trading activities, as well as provision of management and consultancy services. It primarily serves automotive, white goods, pipes and tubes, rolling, manufacturing, electrics-electronics, mechanical engineering, energy, heating equipment, shipbuilding, defense, and packaging industries. The company was incorporated in 1960 and is headquartered in Istanbul, Turkey.