Mesabi Trust (NYSE:MSB) and SSR Mining (NASDAQ:SSRM) are both small-cap basic materials companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, risk, profitability, institutional ownership and earnings.

Volatility & Risk

Mesabi Trust has a beta of 0.5, indicating that its stock price is 50% less volatile than the S&P 500. Comparatively, SSR Mining has a beta of -0.41, indicating that its stock price is 141% less volatile than the S&P 500.

Profitability

This table compares Mesabi Trust and SSR Mining’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mesabi Trust 97.13% 231.66% 156.65%
SSR Mining 6.12% 3.14% 2.08%

Institutional & Insider Ownership

17.1% of Mesabi Trust shares are owned by institutional investors. Comparatively, 51.2% of SSR Mining shares are owned by institutional investors. 0.3% of Mesabi Trust shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings for Mesabi Trust and SSR Mining, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mesabi Trust 0 0 0 0 N/A
SSR Mining 0 1 5 0 2.83

SSR Mining has a consensus price target of $11.83, suggesting a potential upside of 6.61%. Given SSR Mining’s higher possible upside, analysts clearly believe SSR Mining is more favorable than Mesabi Trust.

Valuation and Earnings

This table compares Mesabi Trust and SSR Mining’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mesabi Trust $34.56 million 10.24 $33.49 million N/A N/A
SSR Mining $448.77 million 2.97 $69.31 million $0.34 32.65

SSR Mining has higher revenue and earnings than Mesabi Trust.

Dividends

Mesabi Trust pays an annual dividend of $3.76 per share and has a dividend yield of 13.9%. SSR Mining does not pay a dividend. Mesabi Trust has raised its dividend for 4 consecutive years.

Summary

Mesabi Trust beats SSR Mining on 8 of the 13 factors compared between the two stocks.

Mesabi Trust Company Profile

Mesabi Trust, a royalty trust, engages in iron ore mining business in the United States. The company was founded in 1919 and is based in New York, New York.

SSR Mining Company Profile

SSR Mining Inc. engages in the acquisition, exploration, development, and operation of precious metal resource properties in the Americas. The company primarily explores for gold and silver deposits. Its projects include the Marigold mine located in Humboldt County, Nevada, the United States; and the Seabee Gold Operation located in Saskatchewan, Canada. The company was formerly known as Silver Standard Resources Inc. and changed its name to SSR Mining Inc. in August 2017. SSR Mining Inc. was founded in 1946 and is headquartered in Vancouver, Canada.

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