Head-To-Head Analysis: Steel Dynamics (NASDAQ:STLD) vs. General Steel (OTCMKTS:GSIH)

General Steel (OTCMKTS:GSIH) and Steel Dynamics (NASDAQ:STLD) are both basic materials companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, profitability, risk, earnings and dividends.

Earnings and Valuation

This table compares General Steel and Steel Dynamics”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
General Steel	N/A	N/A	N/A	N/A	N/A
Steel Dynamics	$18.18 billion	1.50	$1.19 billion	$8.01	23.29

Steel Dynamics has higher revenue and earnings than General Steel.

Volatility and Risk

General Steel has a beta of -1.17, indicating that its share price is 217% less volatile than the S&P 500. Comparatively, Steel Dynamics has a beta of 1.46, indicating that its share price is 46% more volatile than the S&P 500.

Profitability

This table compares General Steel and Steel Dynamics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
General Steel	N/A	N/A	N/A
Steel Dynamics	6.52%	13.56%	7.43%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for General Steel and Steel Dynamics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
General Steel	0	0	0	0	0.00
Steel Dynamics	0	6	5	0	2.45

Steel Dynamics has a consensus price target of $182.00, suggesting a potential downside of 2.44%. Given Steel Dynamics’ stronger consensus rating and higher possible upside, analysts clearly believe Steel Dynamics is more favorable than General Steel.

Institutional & Insider Ownership

82.4% of Steel Dynamics shares are held by institutional investors. 53.3% of General Steel shares are held by insiders. Comparatively, 6.3% of Steel Dynamics shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Steel Dynamics beats General Steel on 9 of the 10 factors compared between the two stocks.

About General Steel

General Steel Holdings, Inc. engages in the business of cell research, development, storage, and cell culture service in the People's Republic of China. General Steel Holdings, Inc. was incorporated in 2002 and is headquartered in Beijing, the People's Republic of China.

About Steel Dynamics

Steel Dynamics, Inc., together with its subsidiaries, operates as a steel producer and metal recycler in the United States. The Steel Operations segment offers hot rolled, cold rolled, and coated steel products; parallel flange beams and channel sections, flat bars, large unequal leg angles, and reinforcing steel bars, as well as standard strength carbon, intermediate alloy hardness, and premium grade rail products; engineered special-bar-quality products, merchant-bar-quality products, and other engineered round steel bars; channels, angles, flats, merchant rounds, and reinforcing steel bars; and specialty shapes and light structural steel products. This segment also engages in turning, polishing, straightening, chamfering, precision saw-cutting, and heat treating of bar products. Its products are used in construction, automotive, manufacturing, transportation, heavy and agriculture equipment, and pipe and tube markets. The Metals Recycling Operations segment is involved in the ferrous and nonferrous scrap metal processing, transportation, marketing, brokerage, and scrap management services. Its ferrous products include heavy melting steel, busheling, bundled scrap, shredded scrap, steel turnings, and cast-iron products; and nonferrous products comprise aluminum, brass, copper, stainless steel, and other nonferrous metals. The Steel Fabrication Operations segment produces steel non-residential building components, such as steel joists, girders, trusses, and steel deck products for non-residential steel fabricators, metal building companies, general construction contractors, developers, owners, brokers, and governmental entities, as well as e-commerce warehouses, data centers, metal buildings, and education and commercial building projects. The Aluminum Operations segment offers recycled aluminum flat rolled products. The company also exports its products. Steel Dynamics, Inc. was founded in 1993 and is headquartered in Fort Wayne, Indiana.