Synalloy Corporation (NASDAQ: SYNL) and National Steel (NYSE:SID) are both steel – nec companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.

Profitability

This table compares Synalloy Corporation and National Steel’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Synalloy Corporation -0.59% 1.85% 1.03%
National Steel -3.33% -7.52% -1.33%

Earnings and Valuation

This table compares Synalloy Corporation and National Steel’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Synalloy Corporation $138.57 million 0.84 -$7.09 million ($0.29) -45.86
National Steel $4.92 billion 0.61 -$244.57 million $0.25 8.88

Synalloy Corporation has higher revenue, but lower earnings than National Steel. Synalloy Corporation is trading at a lower price-to-earnings ratio than National Steel, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Synalloy Corporation has a beta of 0.18, indicating that its share price is 82% less volatile than the S&P 500. Comparatively, National Steel has a beta of 2.21, indicating that its share price is 121% more volatile than the S&P 500.

Dividends

Synalloy Corporation pays an annual dividend of $0.13 per share and has a dividend yield of 1.0%. National Steel does not pay a dividend. Synalloy Corporation pays out -44.8% of its earnings in the form of a dividend. National Steel has raised its dividend for 2 consecutive years.

Insider & Institutional Ownership

47.4% of Synalloy Corporation shares are owned by institutional investors. Comparatively, 3.2% of National Steel shares are owned by institutional investors. 10.6% of Synalloy Corporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Synalloy Corporation and National Steel, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Synalloy Corporation 0 0 0 0 N/A
National Steel 0 1 0 0 2.00

Summary

Synalloy Corporation beats National Steel on 10 of the 14 factors compared between the two stocks.

About Synalloy Corporation

Synalloy Corporation is a chemical manufacturing company. The Company operates through two segments: the Metals Segment and the Specialty Chemicals Segment. The Company’s Metals Segment comprises three subsidiaries: Synalloy Metals, Inc., which owns Bristol Metals, LLC (BRISMET), located in Bristol, Tennessee; Palmer of Texas Tanks, Inc. (Palmer), located in Andrews, Texas; and Specialty Pipe & Tube, Inc. (Specialty), located in Mineral Ridge, Ohio and Houston, Texas. The Company’s Metals Segment manufactures stainless steel, other alloy pipe, storage solutions and separation equipment. The Company’s Specialty Chemicals segment consists of the Company’s subsidiary, Manufacturers Soap and Chemical Company (MS&C). The Specialty Chemicals Segment manufactures lubricants, surfactants, reaction intermediaries, sulfated fats and oils, and chemical tolling manufacturing resources.

About National Steel

Companhia Siderurgica Nacional is a Brazil-based company engaged in the steel industry. The Company operates throughout the entire steel production chain, from the mining of iron ore to the production and sale of a range of steel products, including coated galvanized flat steel and tinplate. The Company operates in five segments: Steel, Mining, Cement, Logistics and Energy. The Steel segment focuses on the production, distribution and sale of flat steel, long steel, metallic containers and galvanized steel, with operations in Brazil, the United States, Portugal and Germany. The Mining segment encompasses the activities of iron ore and tin mining. The Cement segment is responsible for the cement production, distribution and sale operations. The Logistics segment manages port terminal for containers, as well as railway networks. The Energy segment includes generation of electric power. The Company is controlled by Vicunha Acos SA.

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