Salzgitter (OTCMKTS:SZGPY) versus Barrick Mining (NYSE:B) Head-To-Head Contrast

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

Valuation & Earnings

This table compares Barrick Mining and Salzgitter”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Barrick Mining	$16.96 billion	3.56	$4.99 billion	$3.88	9.55
Salzgitter	$10.16 billion	0.29	-$83.95 million	$0.12	45.58

Barrick Mining has higher revenue and earnings than Salzgitter. Barrick Mining is trading at a lower price-to-earnings ratio than Salzgitter, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Barrick Mining and Salzgitter, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Barrick Mining	0	6	15	1	2.77
Salzgitter	0	2	5	0	2.71

Barrick Mining currently has a consensus target price of $52.59, indicating a potential upside of 41.97%. Given Barrick Mining’s stronger consensus rating and higher probable upside, analysts plainly believe Barrick Mining is more favorable than Salzgitter.

Volatility and Risk

Barrick Mining has a beta of 0.52, meaning that its stock price is 48% less volatile than the S&P 500. Comparatively, Salzgitter has a beta of 1.74, meaning that its stock price is 74% more volatile than the S&P 500.

Dividends

Barrick Mining pays an annual dividend of $0.70 per share and has a dividend yield of 1.9%. Salzgitter pays an annual dividend of $0.01 per share and has a dividend yield of 0.2%. Barrick Mining pays out 18.0% of its earnings in the form of a dividend. Salzgitter pays out 8.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Barrick Mining	31.60%	16.02%	11.22%
Salzgitter	0.65%	1.29%	0.54%

Institutional and Insider 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, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Barrick Mining beats Salzgitter on 14 of the 17 factors compared between the two stocks.

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.

About Salzgitter

Salzgitter AG, together with its subsidiaries, engages in steel and technology businesses worldwide. It operates through four segments: Steel Production, Steel Processing, Trading, and Technology. The Steel Production segment manufactures steel and special steels, such as hot-rolled wide strip, steel sheet, sections, tailored blanks, as well as scrap trading. The Steel Processing segment produces various high-grade heavy plates; and manufactures line pipes, HFI-welded tubes, and precision and stainless-steel tubes. The Trading segment operates a European sales network, as well as trading companies and agencies worldwide. The Technology segment engages in the provision of machinery and plants for the filling and packaging of beverages, as well as special machinery engineering for shoe manufacturing and elastomer production. The company also provides IT, facility management, logistics, automotive engineering, and research and development services, as well as supplies raw materials. The company was founded in 1858 and is headquartered in Salzgitter, Germany.