United States Steel Corporation (NYSE: X) and SunCoke Energy (NYSE:SXC) are both basic materials companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, profitability, valuation and risk.

Institutional & Insider Ownership

63.4% of United States Steel Corporation shares are held by institutional investors. Comparatively, 90.2% of SunCoke Energy shares are held by institutional investors. 1.0% of United States Steel Corporation shares are held by company insiders. Comparatively, 3.9% of SunCoke Energy shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

United States Steel Corporation pays an annual dividend of $0.20 per share and has a dividend yield of 0.7%. SunCoke Energy does not pay a dividend. United States Steel Corporation pays out 125.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. SunCoke Energy has increased its dividend for 2 consecutive years.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for United States Steel Corporation and SunCoke Energy, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
United States Steel Corporation 3 6 8 0 2.29
SunCoke Energy 0 0 1 0 3.00

United States Steel Corporation currently has a consensus price target of $27.78, suggesting a potential upside of 0.36%. SunCoke Energy has a consensus price target of $11.00, suggesting a potential upside of 17.02%. Given SunCoke Energy’s stronger consensus rating and higher probable upside, analysts plainly believe SunCoke Energy is more favorable than United States Steel Corporation.

Volatility & Risk

United States Steel Corporation has a beta of 2.88, suggesting that its stock price is 188% more volatile than the S&P 500. Comparatively, SunCoke Energy has a beta of 1.24, suggesting that its stock price is 24% more volatile than the S&P 500.

Earnings & Valuation

This table compares United States Steel Corporation and SunCoke Energy’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
United States Steel Corporation $11.21 billion 0.43 $838.00 million $0.16 173.00
SunCoke Energy $1.25 billion 0.48 $226.00 million N/A N/A

United States Steel Corporation has higher revenue and earnings than SunCoke Energy.

Profitability

This table compares United States Steel Corporation and SunCoke Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
United States Steel Corporation 0.24% 6.50% 1.67%
SunCoke Energy -0.01% 3.27% 0.90%

About United States Steel Corporation

United States Steel Corporation is an integrated steel producer. The Company is engaged in producing flat-rolled and tubular products with production operations in North America and Europe. The Company operates through three segments: Flat-Rolled Products (Flat-Rolled), U. S. Steel Europe (USSE) and Tubular Products (Tubular). The Flat-Rolled segment includes the operating results of its integrated steel plants and equity investees in the United States involved in the production of slabs, rounds, strip mill plates, sheets and tin mill products, as well as all iron ore and coke production facilities in the United States. The USSE segment includes the operating results of U. S. Steel Kosice (USSK) and its integrated steel plant and coke production facilities in Slovakia. The Tubular segment includes the operating results of its tubular production facilities, primarily in the United States and equity investees in the United States and Brazil.

About SunCoke Energy

SunCoke Energy, Inc. is a producer of coke in the Americas. The Company’s segments include Domestic Coke, Brazil Coke, Coal Logistics, and Corporate and Other. The Domestic Coke segment consists of its Jewell Coke Company, L.P. (Jewell), Indiana Harbor Coke Company (Indiana Harbor), Haverhill Coke Company LLC (Haverhill), Gateway Energy and Coke Company, LLC (Granite City) and Middletown Coke Company, LLC (Middletown) cokemaking and heat recovery operations. The Brazil Coke segment consists of its operations in Vitoria, Brazil, where the Company operate a cokemaking facility, ArcelorMittal Brasil S.A. The Coal Logistics segment consists of its Convent Marine Terminal (CMT), Kanawha River Terminals, LLC (KRT), SunCoke Lake Terminal, LLC (Lake Terminal) and Dismal River Terminal, LLC (DRT) coal handling and/or mixing service operations. It designs, develops, builds, owns and operates five cokemaking facilities in the United States, as of December 31, 2016.

Receive News & Ratings for United States Steel Corporation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for United States Steel Corporation and related companies with MarketBeat.com's FREE daily email newsletter.