Financial Analysis: Labrador Iron Ore Royalty (LIFZF) and Its Rivals

Valuation and Earnings

This table compares Labrador Iron Ore Royalty and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Labrador Iron Ore Royalty	N/A	N/A	8.21
Labrador Iron Ore Royalty Competitors	$4.56 billion	$266.78 million	-21.31

Labrador Iron Ore Royalty’s competitors have higher revenue and earnings than Labrador Iron Ore Royalty. Labrador Iron Ore Royalty is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Insider and Institutional Ownership

32.4% of Labrador Iron Ore Royalty shares are owned by institutional investors. Comparatively, 16.1% of shares of all “Metals & Mining” companies are owned by institutional investors. 17.6% of shares of all “Metals & Mining” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

Labrador Iron Ore Royalty pays an annual dividend of $0.50 per share and has a dividend yield of 2.6%. Labrador Iron Ore Royalty pays out 21.1% of its earnings in the form of a dividend. As a group, “Metals & Mining” companies pay a dividend yield of 9.1% and pay out 10.6% of their earnings in the form of a dividend. Labrador Iron Ore Royalty lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares Labrador Iron Ore Royalty and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Labrador Iron Ore Royalty	N/A	N/A	N/A
Labrador Iron Ore Royalty Competitors	-1,158,604,987,491,368,400.00%	48.22%	-2.34%

Summary

Labrador Iron Ore Royalty competitors beat Labrador Iron Ore Royalty on 5 of the 9 factors compared.

Labrador Iron Ore Royalty Company Profile

Labrador Iron Ore Royalty Corporation, through its subsidiary, Hollinger-Hanna Limited, holds a 15.10% equity interest in Iron Ore Company of Canada (IOC) that produces and processes iron ores at Labrador City, Newfoundland and Labrador. Its primary products include standard and low silica acid, flux, and direct reduction pellets; iron ore concentrate; and seaborne iron ore pellets. The company was formerly known as Labrador Iron Ore Royalty Income Fund and changed its name to Labrador Iron Ore Royalty Corporation in July 2010. The company is based in Toronto, Canada.