Head to Head Survey: Synalloy Corporation (SYNL) versus Nucor Corporation (NUE)
Synalloy Corporation (NASDAQ: SYNL) and Nucor Corporation (NYSE:NUE) are both industrial products companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, profitability, earnings, institutional ownership, risk and analyst recommendations.
Valuation and Earnings
This table compares Synalloy Corporation and Nucor Corporation’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Synalloy Corporation||$138.57 million||0.82||-$7.09 million||($0.13)||-99.62|
|Nucor Corporation||$16.21 billion||1.10||$796.27 million||$3.59||15.64|
Institutional & Insider Ownership
48.4% of Synalloy Corporation shares are held by institutional investors. Comparatively, 74.9% of Nucor Corporation shares are held by institutional investors. 10.6% of Synalloy Corporation shares are held by company insiders. Comparatively, 0.7% of Nucor Corporation shares are held 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.
Synalloy Corporation pays an annual dividend of $0.13 per share and has a dividend yield of 1.0%. Nucor Corporation pays an annual dividend of $1.51 per share and has a dividend yield of 2.7%. Synalloy Corporation pays out -100.0% of its earnings in the form of a dividend. Nucor Corporation pays out 42.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Nucor Corporation has increased its dividend for 43 consecutive years. Nucor Corporation is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares Synalloy Corporation and Nucor Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current ratings and target prices for Synalloy Corporation and Nucor Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Nucor Corporation has a consensus price target of $67.44, indicating a potential upside of 20.10%. Given Nucor Corporation’s higher probable upside, analysts plainly believe Nucor Corporation is more favorable than Synalloy Corporation.
Risk and Volatility
Synalloy Corporation has a beta of 0.18, meaning that its share price is 82% less volatile than the S&P 500. Comparatively, Nucor Corporation has a beta of 1.59, meaning that its share price is 59% more volatile than the S&P 500.
Nucor Corporation beats Synalloy Corporation on 13 of the 16 factors compared between the two stocks.
Synalloy Corporation Company Profile
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.
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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