NUE vs. STLD, RS, X, ATI, CLF, 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), ATI (ATI), Cleveland-Cliffs (CLF), 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.
Nucor (NYSE:NUE) and Steel Dynamics (NASDAQ:STLD) are both large-cap basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, media sentiment, institutional ownership, profitability, community ranking, earnings and risk.
76.5% of Nucor shares are held by institutional investors. Comparatively, 82.4% of Steel Dynamics shares are held by institutional investors. 0.5% of Nucor shares are held by insiders. Comparatively, 6.0% of Steel Dynamics shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Nucor currently has a consensus target price of $191.29, indicating a potential upside of 18.89%. Steel Dynamics has a consensus target price of $133.86, indicating a potential upside of 2.54%. Given Nucor's stronger consensus rating and higher possible upside, analysts plainly believe Nucor is more favorable than Steel Dynamics.
Nucor pays an annual dividend of $2.16 per share and has a dividend yield of 1.3%. Steel Dynamics pays an annual dividend of $1.84 per share and has a dividend yield of 1.4%. Nucor pays out 12.7% 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. Steel Dynamics is clearly the better dividend stock, given its higher yield and lower payout ratio.
In the previous week, Nucor had 16 more articles in the media than Steel Dynamics. MarketBeat recorded 30 mentions for Nucor and 14 mentions for Steel Dynamics. Steel Dynamics' average media sentiment score of 1.06 beat Nucor's score of 0.59 indicating that Steel Dynamics is being referred to more favorably in the news media.
Steel Dynamics received 155 more outperform votes than Nucor when rated by MarketBeat users. Likewise, 68.14% of users gave Steel Dynamics an outperform vote while only 64.24% of users gave Nucor an outperform vote.
Nucor has a beta of 1.57, meaning that its share price is 57% more volatile than the S&P 500. Comparatively, Steel Dynamics has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500.
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 net margin of 11.10% compared to Nucor's net margin of 10.45%. Steel Dynamics' return on equity of 22.89% beat Nucor's return on equity.
Summary
Nucor and Steel Dynamics tied by winning 10 of the 20 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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