Reviewing SSR Mining (SSRM) and Mesabi Trust (MSB)

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

Profitability

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

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

Risk & Volatility

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

Analyst Recommendations

This is a breakdown of current ratings for SSR Mining and Mesabi Trust, as provided by MarketBeat.

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

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

Institutional and Insider Ownership

46.9% of SSR Mining shares are held by institutional investors. Comparatively, 18.5% of Mesabi Trust shares are held by institutional investors. 0.5% of Mesabi Trust shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

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

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

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.

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.

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.

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