Grupo Simec (NYSE:SIM – Get Rating) and CITIC (OTCMKTS:CTPCY – Get Rating) are both basic materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, dividends, risk and institutional ownership.
Risk & Volatility
Grupo Simec has a beta of 0.43, indicating that its share price is 57% less volatile than the S&P 500. Comparatively, CITIC has a beta of 0.43, indicating that its share price is 57% less volatile than the S&P 500.
Get Grupo Simec alerts:Profitability
This table compares Grupo Simec and CITIC's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Grupo Simec | 19.76% | 23.83% | 19.13% |
| CITIC | N/A | N/A | N/A |
Analyst Ratings
This is a breakdown of recent ratings and target prices for Grupo Simec and CITIC, as reported by MarketBeat.com.| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Grupo Simec | 0 | 0 | 0 | 0 | N/A |
| CITIC | 1 | 0 | 0 | 0 | 1.00 |
CITIC has a consensus price target of $7.00, suggesting a potential upside of 40.28%. Given CITIC's higher probable upside, analysts plainly believe CITIC is more favorable than Grupo Simec.
Institutional and Insider Ownership
0.2% of Grupo Simec shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares Grupo Simec and CITIC's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Grupo Simec | $2.74 billion | 1.69 | $465.60 million | $3.37 | 8.91 |
| CITIC | $91.21 billion | 0.32 | $9.04 billion | N/A | N/A |
CITIC has higher revenue and earnings than Grupo Simec.
Summary
Grupo Simec beats CITIC on 5 of the 8 factors compared between the two stocks.
About Grupo Simec
(Get Rating)
Grupo Simec, S.A.B. de C.V. manufactures, processes, and distributes special bar quality (SBQ) steel and steel alloys products in Mexico, the United States, Brazil, Canada, Latin America, and internationally. The company produces I-beams, channels, structural and commercial angles, hot rolled bars, flat bars, rebars, cold finished bars, electro-welded wire mesh and mesh panels, and wire rods, as well as semi-finished tube rounds and other semi-finished trade products. Its SBQ steel products are used across a range of engineered end-user applications, including axles, hubs, and crankshafts for automobiles and light trucks, machine tools, and off-highway equipment; and structural steel products are used in the non-residential construction market and other construction applications. The company also exports its steel products to Central and South America, and Europe. The company was founded in 1934 and is headquartered in Guadalajara, Mexico. Grupo Simec, S.A.B. de C.V. is a subsidiary of Industrias CH, S.A.B. de C.V.
About CITIC
(Get Rating)
CITIC Limited operates in the financial services, manufacturing, engineering contracting, advances materials, consumption, and urbanization businesses in China. The company offers banking products and services; investment banking, brokerage, securities trading and lending, and asset management services; financial, wealth management, and trust services; and life, health, and accident insurance, as well as reinsurance products. It also engages in the exploration, development, and production of oil; coal mining; import and export of commodities; aluminum smelting; bauxite mining; alumina refining; manganese mining and processing; development of iron ore mine; production of copper and ferroniobium; and operation of coal-fired power stations. In addition, the company manufactures special steel, bars, plates, steel tubes, forged steel, wires, and casting billets. Further, it provides engineering contracting services for infrastructure, housing, municipal, and industrial facilities, as well as agriculture, energy, and resources sectors; and engineering services in the areas of urban development and environmental protection. Additionally, the company engages in the urban renewal and development projects, including residential properties; provision of telecommunication services; and healthcare and electrical products. The company was formerly known as CITIC Pacific Limited and changed its name to CITIC Limited in August 2014. The company was founded in 1987 and is based in Central, Hong Kong.
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