Head to Head Review: Mesabi Trust (MSB) vs. Its Rivals

Mesabi Trust (NYSE:MSB) is one of 1,987 public companies in the “Metals & Mining” industry, but how does it compare to its competitors? We will compare Mesabi Trust to similar businesses based on the strength of its valuation, risk, analyst recommendations, dividends, profitability, earnings and institutional ownership.

Risk and Volatility

Mesabi Trust has a beta of 0.34, meaning that its share price is 66% less volatile than the S&P 500. Comparatively, Mesabi Trust’s competitors have a beta of 1.02, meaning that their average share price is 2% more volatile than the S&P 500.

Dividends

Mesabi Trust pays an annual dividend of $0.20 per share and has a dividend yield of 1.0%. Mesabi Trust pays out 40.8% of its earnings in the form of a dividend. As a group, “Metals & Mining” companies pay a dividend yield of 9.3% and pay out 10.8% of their earnings in the form of a dividend. Mesabi Trust lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Earnings and Valuation

This table compares Mesabi Trust and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Mesabi Trust	$11.21 million	$13.87 million	42.06
Mesabi Trust Competitors	$174.27 billion	$277.23 million	-32.48

Mesabi Trust’s competitors have higher revenue and earnings than Mesabi Trust. Mesabi Trust 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.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Mesabi Trust and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mesabi Trust	0	1	0	0	2.00
Mesabi Trust Competitors	6303	22410	31976	1766	2.47

As a group, “Metals & Mining” companies have a potential upside of 14.42%. Given Mesabi Trust’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Mesabi Trust has less favorable growth aspects than its competitors.

Institutional and Insider Ownership

15.9% of shares of all “Metals & Mining” companies are owned by institutional investors. 0.3% of Mesabi Trust shares are owned by insiders. Comparatively, 17.7% of shares of all “Metals & Mining” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Mesabi Trust and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mesabi Trust	54.46%	32.52%	26.92%
Mesabi Trust Competitors	-1,161,736,352,322,426,400.00%	-9.12%	-2.11%

Summary

Mesabi Trust competitors beat Mesabi Trust on 11 of the 15 factors compared.

Mesabi Trust Company Profile

Mesabi Trust, a royalty trust, engages in iron ore mining business in the United States. Mesabi Trust was founded in 1961 and is based in New York, New York.