Kumba Iron Ore (OTCMKTS:KIROY) and Mesabi Trust (NYSE:MSB) Critical Analysis

Earnings and Valuation

This table compares Mesabi Trust and Kumba Iron Ore”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mesabi Trust	$98.60 million	3.32	$93.27 million	$7.12	3.50
Kumba Iron Ore	$3.74 billion	1.46	$802.57 million	N/A	N/A

Kumba Iron Ore has higher revenue and earnings than Mesabi Trust.

Risk & Volatility

Mesabi Trust has a beta of 0.54, meaning that its stock price is 46% less volatile than the S&P 500. Comparatively, Kumba Iron Ore has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500.

Profitability

This table compares Mesabi Trust and Kumba Iron Ore’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mesabi Trust	96.23%	233.00%	145.93%
Kumba Iron Ore	N/A	N/A	N/A

Dividends

Mesabi Trust pays an annual dividend of $2.24 per share and has a dividend yield of 9.0%. Kumba Iron Ore pays an annual dividend of $0.55 per share and has a dividend yield of 9.7%. Mesabi Trust pays out 31.5% of its earnings in the form of a dividend.

Summary

Kumba Iron Ore beats Mesabi Trust on 5 of the 9 factors compared between the two stocks.

About Mesabi Trust

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.

About Kumba Iron Ore

Kumba Iron Ore Limited, together with its subsidiaries, engages in the exploration, extraction, beneficiation, marketing, sale, and shipping of iron ore for the steel industry primarily in South Africa, China, rest of Asia, Europe, the Middle East, and North Africa. It produces iron ore at Sishen and Kolomela mines in the Northern Cape Province. The company is also involved in the operation of a port in Saldanha Bay in the Western Cape Province. Kumba Iron Ore Limited was incorporated in 2005 and is headquartered in Johannesburg, South Africa. Kumba Iron Ore Limited operates as a subsidiary of Anglo South Africa (Pty) Ltd.