Nucor Corporation (NYSE: NUE) is one of 28 public companies in the “Steel” industry, but how does it contrast to its rivals? We will compare Nucor Corporation to related businesses based on the strength of its valuation, dividends, risk, analyst recommendations, institutional ownership, earnings and profitability.

Institutional and Insider Ownership

74.9% of Nucor Corporation shares are owned by institutional investors. Comparatively, 58.1% of shares of all “Steel” companies are owned by institutional investors. 0.7% of Nucor Corporation shares are owned by company insiders. Comparatively, 7.6% of shares of all “Steel” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and target prices for Nucor Corporation and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nucor Corporation 0 6 9 0 2.60
Nucor Corporation Competitors 289 834 944 29 2.34

Nucor Corporation currently has a consensus price target of $67.24, suggesting a potential upside of 21.43%. As a group, “Steel” companies have a potential upside of 4.23%. Given Nucor Corporation’s stronger consensus rating and higher possible upside, analysts plainly believe Nucor Corporation is more favorable than its rivals.

Valuation & Earnings

This table compares Nucor Corporation and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Nucor Corporation $18.24 billion $2.67 billion 16.05
Nucor Corporation Competitors $7.78 billion $1.01 billion 34.93

Nucor Corporation has higher revenue and earnings than its rivals. Nucor Corporation is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Nucor Corporation and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nucor Corporation 6.08% 13.39% 7.20%
Nucor Corporation Competitors -1,550.91% 3.59% 2.20%

Dividends

Nucor Corporation pays an annual dividend of $1.51 per share and has a dividend yield of 2.7%. Nucor Corporation pays out 43.8% of its earnings in the form of a dividend. As a group, “Steel” companies pay a dividend yield of 2.1% and pay out 60.2% of their earnings in the form of a dividend. Nucor Corporation has increased its dividend for 43 consecutive years. Nucor Corporation is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Volatility & Risk

Nucor Corporation has a beta of 1.54, indicating that its share price is 54% more volatile than the S&P 500. Comparatively, Nucor Corporation’s rivals have a beta of 1.37, indicating that their average share price is 37% more volatile than the S&P 500.

Summary

Nucor Corporation beats its rivals on 12 of the 15 factors compared.

Nucor Corporation Company Profile

Nucor Corporation (Nucor) manufactures steel and steel products. The Company produces direct reduced iron (DRI) for use in its steel mills. It operates in three segments: steel mills, steel products and raw materials. The steel mills segment produces and distributes sheet steel (hot-rolled, cold-rolled and galvanized), plate steel, structural steel (wide-flange beams, beam blanks, H-piling and sheet piling) and bar steel (blooms, billets, concrete reinforcing bar, merchant bar, wire rod and special bar quality). The steel products segment produces steel joists and joist girders, steel deck, fabricated concrete reinforcing steel and cold finished steel. The raw materials produces DRI; brokers ferrous and nonferrous metals, pig iron, HBI and DRI; supplies ferro-alloys, and processes ferrous and nonferrous scrap metal. It also processes ferrous and nonferrous metals and brokers ferrous and nonferrous metals, pig iron, hot briquetted iron (HBI) and DRI.

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