Critical Review: Mechel PAO (MTL) and Nucor Corporation (NUE)
Mechel PAO (NYSE: MTL) and Nucor Corporation (NYSE:NUE) are both basic materials companies, but which is the better business? We will compare the two businesses based on the strength of their risk, earnings, profitabiliy, dividends, valuation, analyst recommendations and institutional ownership.
This is a breakdown of current ratings and recommmendations for Mechel PAO and Nucor Corporation, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Mechel PAO presently has a consensus target price of $10.00, indicating a potential upside of 135.29%. Nucor Corporation has a consensus target price of $69.36, indicating a potential upside of 26.29%. Given Mechel PAO’s higher probable upside, equities research analysts clearly believe Mechel PAO is more favorable than Nucor Corporation.
This table compares Mechel PAO and Nucor Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
8.3% of Mechel PAO shares are held by institutional investors. Comparatively, 77.4% of Nucor Corporation shares are held by institutional investors. 36.3% of Mechel PAO shares are held by insiders. Comparatively, 0.7% of Nucor Corporation shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Nucor Corporation pays an annual dividend of $1.51 per share and has a dividend yield of 2.7%. Mechel PAO does not pay a dividend. Nucor Corporation pays out 47.5% of its earnings in the form of a dividend. Nucor Corporation has increased its dividend for 43 consecutive years.
Valuation & Earnings
This table compares Mechel PAO and Nucor Corporation’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Mechel PAO||$9.39 billion||0.09||$2.43 billion||N/A||N/A|
|Nucor Corporation||$17.31 billion||1.01||$2.54 billion||$3.18||17.27|
Nucor Corporation has higher revenue and earnings than Mechel PAO.
Risk and Volatility
Mechel PAO has a beta of -0.95, meaning that its share price is 195% less volatile than the S&P 500. Comparatively, Nucor Corporation has a beta of 1.52, meaning that its share price is 52% more volatile than the S&P 500.
Nucor Corporation beats Mechel PAO on 13 of the 16 factors compared between the two stocks.
Mechel PAO Company Profile
Mechel PAO, formerly Mechel OAO, is a holding company. The Company operates in the mining, steel and power industry segments. Its segments include Steel segment, comprising production and sales of semi-finished steel products, carbon and specialty long products, carbon and stainless flat products, and value-added downstream metal products, including forgings, stampings, and hardware, and ferrosilicon; Mining segment, comprising production and sales of coal (coking and steam), and middlings, coke and chemical products, and iron ore, which supplies raw materials to the Steel and Power segments, and also sells raw materials to third parties, and Power segment, comprising generation and sales of electricity and heat power, which supplies electricity and heat power to the Steel and Mining segments, and also sells a portion of electricity and heat power to third parties. It has freight seaports in Russia on the Sea of Japan and on the Sea of Azov, and a freight river port on the Kama River.
Nucor Corporation Company Profile
Nucor Corporation (Nucor) manufactures steel and steel products. The Company produces direct reduced iron (DRI) for use in its steel mills. It operates in three segments: steel mills, steel products and raw materials. The steel mills segment produces and distributes sheet steel (hot-rolled, cold-rolled and galvanized), plate steel, structural steel (wide-flange beams, beam blanks, H-piling and sheet piling) and bar steel (blooms, billets, concrete reinforcing bar, merchant bar, wire rod and special bar quality). The steel products segment produces steel joists and joist girders, steel deck, fabricated concrete reinforcing steel and cold finished steel. The raw materials produces DRI; brokers ferrous and nonferrous metals, pig iron, HBI and DRI; supplies ferro-alloys, and processes ferrous and nonferrous scrap metal. It also processes ferrous and nonferrous metals and brokers ferrous and nonferrous metals, pig iron, hot briquetted iron (HBI) and DRI.
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