Vale (VALE) & Its Rivals Head to Head Comparison

Vale (NYSE: VALE) is one of 50 publicly-traded companies in the “Metal mining” industry, but how does it weigh in compared to its peers? We will compare Vale to related businesses based on the strength of its dividends, valuation, institutional ownership, analyst recommendations, profitability, risk and earnings.

Volatility & Risk

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Vale has a beta of 1.64, indicating that its stock price is 64% more volatile than the S&P 500. Comparatively, Vale’s peers have a beta of 5.58, indicating that their average stock price is 458% more volatile than the S&P 500.



Profitability

This table compares Vale and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Vale 16.21% 16.63% 6.91%
Vale Competitors -462.22% -23.22% -1.74%

Institutional & Insider Ownership

19.1% of Vale shares are held by institutional investors. Comparatively, 24.9% of shares of all “Metal mining” companies are held by institutional investors. 11.9% of shares of all “Metal mining” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and target prices for Vale and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vale 0 7 8 0 2.53
Vale Competitors 305 1025 1246 77 2.41

Vale currently has a consensus target price of $14.28, suggesting a potential upside of 1.91%. As a group, “Metal mining” companies have a potential upside of 1.18%. Given Vale’s stronger consensus rating and higher possible upside, equities analysts clearly believe Vale is more favorable than its peers.

Earnings and Valuation

This table compares Vale and its peers revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Vale $33.97 billion $5.51 billion 10.38
Vale Competitors $5.83 billion $914.33 million 81.57

Vale has higher revenue and earnings than its peers. Vale is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Dividends

Vale pays an annual dividend of $0.25 per share and has a dividend yield of 1.8%. Vale pays out 18.5% of its earnings in the form of a dividend. As a group, “Metal mining” companies pay a dividend yield of 2.6% and pay out 47.6% of their earnings in the form of a dividend.

Summary

Vale beats its peers on 9 of the 15 factors compared.

About Vale

Vale S.A. is a global producer of iron ore and iron ore pellets, key raw materials for steelmaking, and producer of nickel. The Company also produces copper, metallurgical and thermal coal, potash, phosphates and other fertilizer nutrients, manganese ore, ferroalloys, platinum group metals, gold, silver and cobalt. The Company’s segments include Ferrous minerals, which comprises the production and extraction of ferrous minerals, as iron ore fines, iron ore pellets and its logistic services, manganese and ferroalloys and others ferrous products and services; Coal, which comprises the extraction of metallurgical and thermal coal and its logistic services; Base metals, which includes the production and extraction of non-ferrous minerals, and are presented as nickel and its byproducts, and copper (copper concentrated), and Others, which comprises sales and expenses of other products, services and investments in joint ventures and associate in other business.

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