Anglo American (OTCMKTS:NGLOY) and ORION OYJ/ADR (OTCMKTS:ORINY) are both basic materials companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, earnings, profitability, analyst recommendations, institutional ownership and valuation.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Anglo American and ORION OYJ/ADR, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Anglo American 0 2 5 1 2.88
ORION OYJ/ADR 0 0 0 0 N/A

Risk & Volatility

Anglo American has a beta of 0.62, suggesting that its share price is 38% less volatile than the S&P 500. Comparatively, ORION OYJ/ADR has a beta of 0.51, suggesting that its share price is 49% less volatile than the S&P 500.

Insider and Institutional Ownership

0.3% of Anglo American shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

Anglo American pays an annual dividend of $0.46 per share and has a dividend yield of 4.1%. ORION OYJ/ADR pays an annual dividend of $0.70 per share and has a dividend yield of 3.8%. Anglo American pays out 35.7% of its earnings in the form of a dividend. ORION OYJ/ADR pays out 76.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Anglo American is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Anglo American and ORION OYJ/ADR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Anglo American N/A N/A N/A
ORION OYJ/ADR 20.74% 39.07% 23.22%

Earnings & Valuation

This table compares Anglo American and ORION OYJ/ADR’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Anglo American $28.65 billion 0.82 $3.17 billion $1.29 8.76
ORION OYJ/ADR $1.23 billion 4.20 $255.44 million $0.91 20.04

Anglo American has higher revenue and earnings than ORION OYJ/ADR. Anglo American is trading at a lower price-to-earnings ratio than ORION OYJ/ADR, indicating that it is currently the more affordable of the two stocks.

Summary

Anglo American beats ORION OYJ/ADR on 9 of the 14 factors compared between the two stocks.

About Anglo American

Anglo American plc, together with its subsidiaries, engages in exploring, mining, and processing various metals and minerals worldwide. The company explores for rough and polished diamonds, copper, platinum group metals, metallurgical and thermal coal, and nickel; and iron and manganese ores, as well as alloys. Anglo American plc was founded in 1917 and is headquartered in London, the United Kingdom.

About ORION OYJ/ADR

Orion Oyj engages in the development and manufacture of pharmaceuticals, active pharmaceutical ingredients (APIs), and diagnostic tests worldwide. The company operates in two segments, Pharmaceuticals and Diagnostics. The Pharmaceuticals segment develops, manufactures, and markets pharmaceuticals and APIs. This segment provides proprietary drugs in the areas of central nervous system, oncology and critical care, and pulmonary care; generic prescription drugs, as well as self-care products, such as non-prescription medicines, basic ointments, and vitamins; proprietary and generic veterinary drugs; and APIs for generic and proprietary drugs, as well as offers contract manufacturing services for APIs. This segment also markets and sells veterinary drugs manufactured by other international companies. The Diagnostics segment develops, manufactures, and markets in vitro diagnostic test systems and tests for diagnosing diseases and monitoring treatment efficacy. The company was founded in 1917 and is headquartered in Espoo, Finland.

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