SunCoke Energy (NYSE: SXC) and Steel Dynamics (NASDAQ:STLD) are both oils/energy companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, profitability and valuation.

Analyst Ratings

This is a breakdown of current ratings and price targets for SunCoke Energy and Steel Dynamics, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SunCoke Energy 0 0 1 0 3.00
Steel Dynamics 0 3 12 0 2.80

SunCoke Energy presently has a consensus target price of $11.00, suggesting a potential upside of 20.88%. Steel Dynamics has a consensus target price of $41.85, suggesting a potential upside of 22.32%. Given Steel Dynamics’ higher possible upside, analysts plainly believe Steel Dynamics is more favorable than SunCoke Energy.

Profitability

This table compares SunCoke Energy and Steel Dynamics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SunCoke Energy -0.01% 3.27% 0.90%
Steel Dynamics 6.07% 21.75% 9.34%

Dividends

Steel Dynamics pays an annual dividend of $0.62 per share and has a dividend yield of 1.8%. SunCoke Energy does not pay a dividend. Steel Dynamics pays out 28.6% of its earnings in the form of a dividend. Steel Dynamics has raised its dividend for 2 consecutive years.

Insider and Institutional Ownership

90.2% of SunCoke Energy shares are held by institutional investors. Comparatively, 82.7% of Steel Dynamics shares are held by institutional investors. 3.9% of SunCoke Energy shares are held by company insiders. Comparatively, 4.2% of Steel Dynamics shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares SunCoke Energy and Steel Dynamics’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
SunCoke Energy $1.25 billion 0.47 $226.00 million N/A N/A
Steel Dynamics $8.77 billion 0.94 $1.37 billion $2.17 15.76

Steel Dynamics has higher revenue and earnings than SunCoke Energy.

Risk and Volatility

SunCoke Energy has a beta of 1.24, indicating that its share price is 24% more volatile than the S&P 500. Comparatively, Steel Dynamics has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500.

Summary

Steel Dynamics beats SunCoke Energy on 12 of the 16 factors compared between the two stocks.

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.

About Steel Dynamics

Steel Dynamics, Inc. is a steel producing and a metal recycling company. The Company is engaged in the manufacture and sale of steel products, processing and sale of recycled ferrous and nonferrous metals, and fabrication and sale of steel joists and deck products. Its segments include steel operations, metals recycling operations, steel fabrication operations and Other Operations. It offers a range of steel products, such as sheet products, long products and steel finishing. The steel operations segment includes Butler Flat Roll Division, Columbus Flat Roll Division, The Techs galvanizing lines, Structural and Rail Division, Engineered Bar Products Division, Roanoke Bar Division, Steel of West Virginia and Iron Dynamics. The metals recycling operations segment consists of OmniSource Corporation. The fabrication operations produce steel building components. The Other Operations segment consists of subsidiary operations and smaller joint ventures.

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