Analyzing Timken Steel Corporation (TMST) & Worthington Industries (WOR)
Timken Steel Corporation (NYSE: TMST) and Worthington Industries (NYSE:WOR) are both basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, profitabiliy, analyst recommendations, earnings and institutional ownership.
Insider and Institutional Ownership
75.2% of Timken Steel Corporation shares are owned by institutional investors. Comparatively, 54.4% of Worthington Industries shares are owned by institutional investors. 8.1% of Timken Steel Corporation shares are owned by company insiders. Comparatively, 32.0% of Worthington Industries shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Timken Steel Corporation and Worthington Industries’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Timken Steel Corporation||$961.00 million||0.75||-$42.70 million||($2.26)||-7.14|
|Worthington Industries||$3.01 billion||1.10||$306.33 million||N/A||N/A|
Worthington Industries has higher revenue and earnings than Timken Steel Corporation.
This is a breakdown of current ratings and recommmendations for Timken Steel Corporation and Worthington Industries, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Timken Steel Corporation||0||2||1||0||2.33|
Timken Steel Corporation currently has a consensus price target of $19.75, indicating a potential upside of 22.37%. Worthington Industries has a consensus price target of $46.50, indicating a potential downside of 11.76%. Given Timken Steel Corporation’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Timken Steel Corporation is more favorable than Worthington Industries.
Risk and Volatility
Timken Steel Corporation has a beta of 2.25, suggesting that its stock price is 125% more volatile than the S&P 500. Comparatively, Worthington Industries has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500.
Worthington Industries pays an annual dividend of $0.80 per share and has a dividend yield of 1.5%. Timken Steel Corporation does not pay a dividend. Timken Steel Corporation has increased its dividend for 6 consecutive years.
This table compares Timken Steel Corporation and Worthington Industries’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Timken Steel Corporation||-10.34%||-15.69%||-9.06%|
Worthington Industries beats Timken Steel Corporation on 8 of the 14 factors compared between the two stocks.
Timken Steel Corporation Company Profile
TimkenSteel Corporation manufactures alloy steel, as well as carbon and micro-alloy steel. The Company’s portfolio includes special bar quality (SBQ) bars, seamless mechanical tubing and precision steel components. In addition, the Company supplies machining and thermal treatment services, as well as manage raw material recycling programs, which are used as a feeder system for its melt operations. The Company’s products include SBQ Steel and Seamless Mechanical Steel Tubing, and Value-added Precision Products and Services. Its focus is on alloy steel. The Company manufactures carbon, micro-alloy and alloy steel, sold as ingots, bars and tubes. In addition to its customized steels, the Company also manufactures custom-make precision components. Its products and services are used in a range of demanding applications in the market sectors, such as oil and gas, industrial equipment, mining and power generation.
Worthington Industries Company Profile
Worthington Industries, Inc. is a metals manufacturing company, focused on value-added steel processing and manufactured metal products. The Company’s segments include Steel Processing, Pressure Cylinders, Engineered Cabs and Other. The Steel Processing segment buys coils of steel from integrated steel mills and mini-mills, and also toll processes steel for steel mills, end users, service centers and other processors. The Pressure Cylinders segment manufactures and sells filled and unfilled pressure cylinders, tanks, hand torches, and oil and gas equipment along with various accessories and related products for end use market applications. The Engineered Cabs is a non-captive designer and manufacturer of custom-engineered open and enclosed cabs and operator stations and custom fabrications for heavy mobile equipment used in the agricultural, construction, forestry, mining and military industries. The Other segment includes Construction Services and Worthington Energy Innovations.
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