Cleveland-Cliffs (NYSE:CLF) vs. JFE (OTCMKTS:JFEEF) Head to Head Survey

Cleveland-Cliffs (NYSE:CLF) and JFE (OTCMKTS:JFEEF) are both mid-cap basic materials companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, profitability, risk, institutional ownership, analyst recommendations and dividends.

Earnings and Valuation

This table compares Cleveland-Cliffs and JFE”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cleveland-Cliffs	$18.62 billion	0.27	-$754.00 million	($3.40)	-3.04
JFE	$31.91 billion	0.24	$606.33 million	$0.76	15.84

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

Risk & Volatility

Cleveland-Cliffs has a beta of 2.07, suggesting that its stock price is 107% more volatile than the S&P 500. Comparatively, JFE has a beta of 0.5, suggesting that its stock price is 50% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for Cleveland-Cliffs and JFE, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cleveland-Cliffs	3	4	3	0	2.00
JFE	0	0	0	0	0.00

Cleveland-Cliffs currently has a consensus price target of $12.68, indicating a potential upside of 22.82%. Given Cleveland-Cliffs’ stronger consensus rating and higher probable upside, research analysts plainly believe Cleveland-Cliffs is more favorable than JFE.

Institutional & Insider Ownership

67.7% of Cleveland-Cliffs shares are owned by institutional investors. 1.7% of Cleveland-Cliffs shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Cleveland-Cliffs and JFE’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cleveland-Cliffs	-9.00%	-20.02%	-6.10%
JFE	1.63%	2.95%	1.34%

About Cleveland-Cliffs

Cleveland-Cliffs is the largest flat-rolled steel company and the largest iron ore pellet producer in North America. The company is vertically integrated from mining through iron making, steelmaking, rolling, finishing and downstream with hot and cold stamping of steel parts and components. The company was formerly known as Cliffs Natural Resources Inc. and changed its name to Cleveland-Cliffs Inc. in August 2017. Cleveland-Cliffs Inc. was founded in 1847 and is headquartered in Cleveland, Ohio.

About JFE

JFE Holdings, Inc., through its subsidiaries, engages in steel, engineering, and trading businesses in Japan and internationally. Its Steel segment produces and sells various steel products, processed steel products, and raw materials, as well as operates in the transportation, facility maintenance, and construction businesses. The company's Engineering segment handles the engineering of energy, urban environment, steel structures and industrial machinery, recycling, and electricity retailing projects. Its Trading segment purchases, processes, and distributes steel products, raw materials for steel production, nonferrous metal products, food, etc. JFE Holdings, Inc. was incorporated in 2002 and is headquartered in Tokyo, Japan.