NUE vs. STLD, RS, X, CLF, ATI, CMC, CRS, WOR, HAYN, and ZEUS
Should you be buying Nucor stock or one of its competitors? The main competitors of Nucor include Steel Dynamics (STLD), Reliance (RS), United States Steel (X), Cleveland-Cliffs (CLF), ATI (ATI), Commercial Metals (CMC), Carpenter Technology (CRS), Worthington Enterprises (WOR), Haynes International (HAYN), and Olympic Steel (ZEUS). These companies are all part of the "steel" industry.
Steel Dynamics (NASDAQ:STLD) and Nucor (NYSE:NUE) are both large-cap basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, media sentiment, dividends, valuation, earnings, profitability, community ranking and analyst recommendations.
Steel Dynamics has a net margin of 12.89% compared to Steel Dynamics' net margin of 12.40%. Nucor's return on equity of 27.62% beat Steel Dynamics' return on equity.
In the previous week, Nucor had 8 more articles in the media than Steel Dynamics. MarketBeat recorded 13 mentions for Nucor and 5 mentions for Steel Dynamics. Nucor's average media sentiment score of 1.53 beat Steel Dynamics' score of 0.98 indicating that Steel Dynamics is being referred to more favorably in the media.
Steel Dynamics presently has a consensus target price of $125.29, suggesting a potential downside of 2.39%. Nucor has a consensus target price of $192.75, suggesting a potential upside of 18.00%. Given Steel Dynamics' stronger consensus rating and higher probable upside, analysts clearly believe Nucor is more favorable than Steel Dynamics.
Steel Dynamics received 156 more outperform votes than Nucor when rated by MarketBeat users. Likewise, 68.30% of users gave Steel Dynamics an outperform vote while only 64.39% of users gave Nucor an outperform vote.
Steel Dynamics pays an annual dividend of $1.84 per share and has a dividend yield of 1.4%. Nucor pays an annual dividend of $2.16 per share and has a dividend yield of 1.3%. Steel Dynamics pays out 12.6% of its earnings in the form of a dividend. Nucor pays out 12.7% 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. Steel Dynamics has increased its dividend for 12 consecutive years and Nucor has increased its dividend for 51 consecutive years. Steel Dynamics is clearly the better dividend stock, given its higher yield and lower payout ratio.
82.4% of Steel Dynamics shares are owned by institutional investors. Comparatively, 76.5% of Nucor shares are owned by institutional investors. 6.0% of Steel Dynamics shares are owned by insiders. Comparatively, 0.5% of Nucor shares are owned 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.
Nucor has higher revenue and earnings than Steel Dynamics. Steel Dynamics is trading at a lower price-to-earnings ratio than Nucor, indicating that it is currently the more affordable of the two stocks.
Steel Dynamics has a beta of 1.4, suggesting that its stock price is 40% more volatile than the S&P 500. Comparatively, Nucor has a beta of 1.6, suggesting that its stock price is 60% more volatile than the S&P 500.
Summary
Nucor beats Steel Dynamics on 11 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding NUE and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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