Critical Analysis: Olympic Steel (ZEUS) versus Its Competitors
Olympic Steel (NASDAQ: ZEUS) is one of 28 publicly-traded companies in the “Steel” industry, but how does it compare to its peers? We will compare Olympic Steel to related businesses based on the strength of its institutional ownership, valuation, profitability, earnings, analyst recommendations, dividends and risk.
Earnings & Valuation
This table compares Olympic Steel and its peers revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Olympic Steel||$1.21 billion||$36.12 million||25.36|
|Olympic Steel Competitors||$7.58 billion||$993.35 million||32.68|
Olympic Steel’s peers have higher revenue and earnings than Olympic Steel. Olympic Steel is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
Insider and Institutional Ownership
68.1% of Olympic Steel shares are held by institutional investors. Comparatively, 52.1% of shares of all “Steel” companies are held by institutional investors. 18.3% of Olympic Steel shares are held by company insiders. Comparatively, 12.1% of shares of all “Steel” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Volatility & Risk
Olympic Steel has a beta of 1.72, indicating that its share price is 72% more volatile than the S&P 500. Comparatively, Olympic Steel’s peers have a beta of 1.37, indicating that their average share price is 37% more volatile than the S&P 500.
This table compares Olympic Steel and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Olympic Steel Competitors||-1,550.91%||3.59%||2.20%|
This is a summary of recent ratings and price targets for Olympic Steel and its peers, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Olympic Steel Competitors||330||959||1008||35||2.32|
Olympic Steel currently has a consensus price target of $22.33, suggesting a potential upside of 17.42%. As a group, “Steel” companies have a potential upside of 14.81%. Given Olympic Steel’s stronger consensus rating and higher possible upside, research analysts plainly believe Olympic Steel is more favorable than its peers.
Olympic Steel pays an annual dividend of $0.08 per share and has a dividend yield of 0.4%. Olympic Steel pays out 10.7% 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.
Olympic Steel beats its peers on 8 of the 15 factors compared.
About Olympic Steel
Olympic Steel, Inc. is a metals service center. The Company provides metals processing and distribution services for a range of customers. The Company operates through three segments: carbon flat products, specialty metals flat products, and tubular and pipe products. The Company’s carbon flat products segment’s focus is on the direct sale and distribution of large volumes of processed carbon and coated flat-rolled sheet, coil and plate products and fabricated parts. The Company’s specialty metals flat products segment’s focus is on the direct sale and distribution of processed aluminum and stainless flat-rolled sheet and coil products, flat bar products and fabricated parts. The Company’s tubular and pipe products segment consists of the Chicago Tube and Iron Company (CTI) business. Through its tubular and pipe products segment, it distributes metals tubing, pipe, bar, valve and fittings, and fabricate pressure parts supplied to various industrial markets.
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