STLD vs. MT, TS, NUE, RS, X, CLF, ATI, CMC, CRS, and WOR
Should you be buying Steel Dynamics stock or one of its competitors? The main competitors of Steel Dynamics include ArcelorMittal (MT), Tenaris (TS), Nucor (NUE), Reliance (RS), United States Steel (X), Cleveland-Cliffs (CLF), ATI (ATI), Commercial Metals (CMC), Carpenter Technology (CRS), and Worthington Enterprises (WOR).
ArcelorMittal (NYSE:MT) and Steel Dynamics (NASDAQ:STLD) are both large-cap basic materials companies, but which is the better investment? We will contrast the two companies based on the strength of their community ranking, institutional ownership, dividends, earnings, risk, analyst recommendations, valuation, profitability and media sentiment.
ArcelorMittal pays an annual dividend of $0.43 per share and has a dividend yield of 1.7%. Steel Dynamics pays an annual dividend of $1.84 per share and has a dividend yield of 1.5%. ArcelorMittal pays out 48.3% of its earnings in the form of a dividend. Steel Dynamics pays out 12.6% 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. ArcelorMittal has raised its dividend for 1 consecutive years and Steel Dynamics has raised its dividend for 12 consecutive years.
9.9% of ArcelorMittal shares are held by institutional investors. Comparatively, 82.4% of Steel Dynamics shares are held by institutional investors. 0.1% of ArcelorMittal shares are held by insiders. Comparatively, 6.1% of Steel Dynamics shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Steel Dynamics has lower revenue, but higher earnings than ArcelorMittal. Steel Dynamics is trading at a lower price-to-earnings ratio than ArcelorMittal, indicating that it is currently the more affordable of the two stocks.
Steel Dynamics received 11 more outperform votes than ArcelorMittal when rated by MarketBeat users. Likewise, 68.30% of users gave Steel Dynamics an outperform vote while only 63.02% of users gave ArcelorMittal an outperform vote.
ArcelorMittal presently has a consensus target price of $30.30, indicating a potential upside of 20.81%. Steel Dynamics has a consensus target price of $125.29, indicating a potential upside of 1.59%. Given Steel Dynamics' stronger consensus rating and higher possible upside, equities research analysts plainly believe ArcelorMittal is more favorable than Steel Dynamics.
In the previous week, Steel Dynamics had 7 more articles in the media than ArcelorMittal. MarketBeat recorded 8 mentions for Steel Dynamics and 1 mentions for ArcelorMittal. ArcelorMittal's average media sentiment score of 1.42 beat Steel Dynamics' score of 1.01 indicating that Steel Dynamics is being referred to more favorably in the news media.
Steel Dynamics has a net margin of 12.89% compared to Steel Dynamics' net margin of 1.15%. ArcelorMittal's return on equity of 27.62% beat Steel Dynamics' return on equity.
ArcelorMittal has a beta of 1.84, indicating that its share price is 84% more volatile than the S&P 500. Comparatively, Steel Dynamics has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500.
Summary
Steel Dynamics beats ArcelorMittal on 14 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding STLD 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 NASDAQ 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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