McEwen (NYSE:MUX) versus Maanshan Iron & Steel (OTCMKTS:MAANF) Financial Analysis

Maanshan Iron & Steel (OTCMKTS:MAANF) and McEwen (NYSE:MUX) are both materials companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, analyst recommendations, earnings, dividends and profitability.

Profitability

This table compares Maanshan Iron & Steel and McEwen’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Maanshan Iron & Steel	N/A	N/A	N/A
McEwen	32.46%	13.48%	9.13%

Valuation and Earnings

This table compares Maanshan Iron & Steel and McEwen”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Maanshan Iron & Steel	N/A	N/A	N/A	$0.02	8.80
McEwen	$197.55 million	6.26	$34.43 million	$1.26	16.00

McEwen has higher revenue and earnings than Maanshan Iron & Steel. Maanshan Iron & Steel is trading at a lower price-to-earnings ratio than McEwen, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations and price targets for Maanshan Iron & Steel and McEwen, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Maanshan Iron & Steel	1	0	0	0	1.00
McEwen	1	1	3	0	2.40

McEwen has a consensus target price of $28.00, suggesting a potential upside of 38.89%. Given McEwen’s stronger consensus rating and higher probable upside, analysts plainly believe McEwen is more favorable than Maanshan Iron & Steel.

Insider & Institutional Ownership

3.2% of Maanshan Iron & Steel shares are owned by institutional investors. Comparatively, 17.0% of McEwen shares are owned by institutional investors. 14.8% of McEwen shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

McEwen beats Maanshan Iron & Steel on 11 of the 11 factors compared between the two stocks.

About Maanshan Iron & Steel

Maanshan Iron & Steel Company Limited, together with its subsidiaries, manufactures and sells iron and steel products, and related by-products in Mainland China, Hong Kong, and internationally. The company offers steel plates, including hot and cold-rolled thin plates, galvanized plates, coil-coating plates, and medium plates; section steel products, such as H-shaped steel and medium-shaped steel; high-speed wire rod and hot-rolled reinforcing steel products; and train wheels and wheel rims. It also engages in the production and distribution of ferrous metallurgy, screw threaded steels, round and section steels, angle and deformed steels, wires, and rods; sale, import, and export of iron ore, iron ore fines, and scrap steel; metallurgy and extended processing of ferrous metals; production and sale of coke and coke chemical products and energy; production and distribution of metallic products; design, research and development, manufacture, maintenance, and sale of rail wheels, axles, wheel sets, bogies, and other rail equipment; trading of steel products and pig iron; and investment and trading businesses. The company was founded in 1953 and is headquartered in Maanshan, the People's Republic of China.

About McEwen

McEwen Mining Inc. engages in the exploration, development, production, and sale of gold and silver. It also explores for copper deposits. The company owns 100% interests in the El Gallo and Fenix projects located in Mexico; and the Black Fox Mine and Stock Mill, Grey Fox, and Froome and Tamarack properties in Canada. It also owns interests in the Fuller, Davidson-Tisdale, Buffalo Ankerite, and Paymaster exploration properties located in Canada; and a 49% interest in the San José mine located in Argentina. In addition, the company owns 100% interests in the Gold Bar and Tonkin properties located in Eureka County, Nevada; and interests in the Los Azules copper project located in the cordilleran region in the province of San Juan, Argentina. The company was formerly known as US Gold Corporation and changed its name to McEwen Mining Inc. in January 2012. McEwen Mining Inc. was founded in 1979 and is headquartered in Toronto, Canada.