Steel Dynamics (NASDAQ:STLD) and Nippon Steel & Sumitomo Metal (OTCMKTS:NISTF) are both basic materials companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, institutional ownership, analyst recommendations and risk.
Institutional and Insider Ownership
79.4% of Steel Dynamics shares are held by institutional investors. 4.4% of Steel Dynamics shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This table compares Steel Dynamics and Nippon Steel & Sumitomo Metal’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Steel Dynamics||$11.82 billion||0.67||$1.26 billion||$5.49||6.46|
|Nippon Steel & Sumitomo Metal||N/A||N/A||N/A||N/A||N/A|
Steel Dynamics has higher revenue and earnings than Nippon Steel & Sumitomo Metal.
This table compares Steel Dynamics and Nippon Steel & Sumitomo Metal’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Nippon Steel & Sumitomo Metal||N/A||N/A||N/A|
Steel Dynamics pays an annual dividend of $0.75 per share and has a dividend yield of 2.1%. Nippon Steel & Sumitomo Metal does not pay a dividend. Steel Dynamics pays out 13.7% of its earnings in the form of a dividend. Steel Dynamics has raised its dividend for 6 consecutive years.
This is a summary of current recommendations and price targets for Steel Dynamics and Nippon Steel & Sumitomo Metal, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Nippon Steel & Sumitomo Metal||0||0||0||0||N/A|
Steel Dynamics currently has a consensus target price of $50.10, suggesting a potential upside of 41.29%. Given Steel Dynamics’ higher probable upside, equities analysts plainly believe Steel Dynamics is more favorable than Nippon Steel & Sumitomo Metal.
Steel Dynamics beats Nippon Steel & Sumitomo Metal on 10 of the 11 factors compared between the two stocks.
About Steel Dynamics
Steel Dynamics, Inc., together with its subsidiaries, engages in the steel products manufacturing and metals recycling businesses in the United States and internationally. The company operates through three segments: Steel Operations, Metals Recycling Operations, and Steel Fabrication Operations. The Steel Operations segment provides hot roll, cold roll, and coated steel products; structural steel beams, pilings, and standard and premium grade rail products; engineered special-bar-quality products; merchant bar products, including angles, merchant rounds, flats, channels, and reinforcing bars; beams, channels, and specialty steel sections; and threaded rod products, and cold drawn and heat treated bars. Its products are used in construction, automotive, manufacturing, transportation, heavy and agriculture equipment, and pipe and tube industry sectors. This segment sells its products directly to end-users, steel fabricators, and service centers. The Metals Recycling Operations segment is involved in the purchase, process, and resale of ferrous and nonferrous scrap metals into reusable forms and grades. Its ferrous products include heavy melting steel, busheling, bundled scrap, shredded scrap, steel turnings, and cast iron products; and nonferrous products comprise aluminum, brass, copper, stainless steel, and other nonferrous metals. This segment also provides transportation logistics, scrap management, marketing, and brokerage services. The Steel Fabrication Operations segment produces steel building components comprising steel joists, girders, trusses, and steel deck products for non-residential steel fabricators. Steel Dynamics, Inc. was founded in 1993 and is headquartered in Fort Wayne, Indiana.
About Nippon Steel & Sumitomo Metal
Nippon Steel & Sumitomo Metal Corporation engages in steelmaking and steel fabrication businesses worldwide. It operates in five segments: Steelmaking and Steel Fabrication, Engineering and Construction, Chemicals, New materials, and System Solutions. The company offers steel plates; hot- and cold-rolled steel sheets and coils, coated steel sheets, color coated steel sheets, electrolytic tin plates, and electrical steel sheets; bar and rod materials; and structural steel products. It also provides pipes and tubes; and railway, automotive, and construction and industrial machinery parts, such as railway wheels, driving mechanisms, axles, couplers, bogie trucks, brake disks, control bogies, brake calipers, test equipment, crankshafts and front axles, aluminum wheels, permanent magnet retarders, die materials, mill rolls, circular forgings, forged products for power generation, and shape-memory alloys. In addition, the company offers titanium products for use in automobiles, architecture, civil engineering and ocean development, aircraft, sports gears and consumer products, welded tubes, PHE, and chemical and electrolytic fields; stainless steel sheets, shapes, plates, and wire rods, as well as strips, clad steel sheets, nickel and nickel alloy products, and crystal series products; and steel slags. Further, it manufactures and markets industrial machinery and equipment; performs construction work under contract; and engages in waste processing and recycling activities, as well as in supplying electricity, gas, and heat. Additionally, the company offers coal-based chemical products and petrochemicals, as well as electronic materials; and materials for semiconductors and electronic parts, carbon fiber and composite products, and products that apply technologies for metal processing. It also provides computer systems engineering and consulting services; and IT-enabled outsourcing and other services. The company was founded in 1949 and is headquartered in Tokyo, Japan.
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