Critical Comparison: Steel Dynamics (STLD) versus The Competition
Steel Dynamics (NASDAQ: STLD) is one of 28 public companies in the “Steel” industry, but how does it contrast to its competitors? We will compare Steel Dynamics to related businesses based on the strength of its analyst recommendations, earnings, valuation, dividends, risk, profitability and institutional ownership.
This is a breakdown of recent ratings and target prices for Steel Dynamics and its competitors, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Steel Dynamics Competitors||329||959||1003||35||2.32|
Steel Dynamics currently has a consensus price target of $41.21, indicating a potential upside of 21.79%. As a group, “Steel” companies have a potential upside of 13.65%. Given Steel Dynamics’ stronger consensus rating and higher probable upside, research analysts clearly believe Steel Dynamics is more favorable than its competitors.
Earnings & Valuation
This table compares Steel Dynamics and its competitors gross revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Steel Dynamics||$8.77 billion||$1.37 billion||15.59|
|Steel Dynamics Competitors||$7.58 billion||$993.35 million||34.29|
Steel Dynamics has higher revenue and earnings than its competitors. Steel Dynamics is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
Risk & Volatility
Steel Dynamics has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500. Comparatively, Steel Dynamics’ competitors have a beta of 1.37, meaning that their average share price is 37% more volatile than the S&P 500.
This table compares Steel Dynamics and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Steel Dynamics Competitors||-1,550.91%||3.59%||2.20%|
Institutional & Insider Ownership
82.7% of Steel Dynamics shares are owned by institutional investors. Comparatively, 52.1% of shares of all “Steel” companies are owned by institutional investors. 4.2% of Steel Dynamics shares are owned by insiders. Comparatively, 12.1% of shares of all “Steel” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Steel Dynamics pays an annual dividend of $0.62 per share and has a dividend yield of 1.8%. Steel Dynamics pays out 28.6% of its earnings in the form of a dividend. As a group, “Steel” companies pay a dividend yield of 2.2% and pay out 60.2% of their earnings in the form of a dividend.
Steel Dynamics beats its competitors on 10 of the 15 factors compared.
Steel Dynamics Company Profile
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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