ArcelorMittal vs Tata Steel Which Is Superior?

ArcelorMittal and Tata Steel are two of the largest steel companies in the world, known for their significant presence in the global steel industry. Both firms constantly compete for market share and innovation in steel production. ArcelorMittal, a multinational steel manufacturing corporation based in Luxembourg, is known for its diverse product portfolio and global operations. On the other hand, Tata Steel, an Indian multinational steel-making company, boasts a strong domestic presence and a focus on sustainability. Investors closely track the performance of both companies' stocks, as they are indicators of the steel industry's health and overall economic trends.

ArcelorMittal or Tata Steel?

When comparing ArcelorMittal and Tata Steel, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between ArcelorMittal and Tata Steel.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. ArcelorMittal has a dividend yield of 2.8%, while Tata Steel has a dividend yield of 0.03%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. ArcelorMittal reports a 5-year dividend growth of 17.08% year and a payout ratio of 36.75%. On the other hand, Tata Steel reports a 5-year dividend growth of -5.96% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with ArcelorMittal P/E ratio at 15.33 and Tata Steel's P/E ratio at -43.13. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. ArcelorMittal P/B ratio is 0.37 while Tata Steel's P/B ratio is 1.93.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, ArcelorMittal has seen a 5-year revenue growth of 0.08%, while Tata Steel's is 0.35%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ArcelorMittal's ROE at 2.37% and Tata Steel's ROE at -4.54%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $23.95 for ArcelorMittal and $16.75 for Tata Steel. Over the past year, ArcelorMittal's prices ranged from $20.52 to $29.01, with a yearly change of 41.37%. Tata Steel's prices fluctuated between $13.05 and $25.00, with a yearly change of 91.57%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.