National Steel (NYSE: SID) and Carpenter Technology Corporation (NYSE:CRS) are both basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, institutional ownership, profitabiliy and risk.

Profitability

This table compares National Steel and Carpenter Technology Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
National Steel N/A N/A N/A
Carpenter Technology Corporation 2.61% 4.48% 1.83%

Dividends

Carpenter Technology Corporation pays an annual dividend of $0.72 per share and has a dividend yield of 1.9%. National Steel does not pay a dividend. Carpenter Technology Corporation pays out 72.0% of its earnings in the form of a dividend. National Steel has increased its dividend for 2 consecutive years.

Earnings and Valuation

This table compares National Steel and Carpenter Technology Corporation’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
National Steel $5.23 billion 0.66 $935.96 million $0.25 10.20
Carpenter Technology Corporation $1.80 billion 1.00 $218.20 million $1.00 38.40

National Steel has higher revenue and earnings than Carpenter Technology Corporation. National Steel is trading at a lower price-to-earnings ratio than Carpenter Technology Corporation, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

National Steel has a beta of 2.27, suggesting that its share price is 127% more volatile than the S&P 500. Comparatively, Carpenter Technology Corporation has a beta of 2.08, suggesting that its share price is 108% more volatile than the S&P 500.

Institutional and Insider Ownership

3.4% of National Steel shares are held by institutional investors. Comparatively, 95.0% of Carpenter Technology Corporation shares are held by institutional investors. 3.6% of Carpenter Technology Corporation shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and recommmendations for National Steel and Carpenter Technology Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
National Steel 0 0 0 0 N/A
Carpenter Technology Corporation 0 2 3 0 2.60

Carpenter Technology Corporation has a consensus price target of $43.40, suggesting a potential upside of 13.02%. Given Carpenter Technology Corporation’s higher possible upside, analysts plainly believe Carpenter Technology Corporation is more favorable than National Steel.

Summary

Carpenter Technology Corporation beats National Steel on 11 of the 16 factors compared between the two stocks.

About National Steel

Companhia Siderurgica Nacional is a Brazil-based company engaged in the steel industry. The Company operates throughout the entire steel production chain, from the mining of iron ore to the production and sale of a range of steel products, including coated galvanized flat steel and tinplate. The Company operates in five segments: Steel, Mining, Cement, Logistics and Energy. The Steel segment focuses on the production, distribution and sale of flat steel, long steel, metallic containers and galvanized steel, with operations in Brazil, the United States, Portugal and Germany. The Mining segment encompasses the activities of iron ore and tin mining. The Cement segment is responsible for the cement production, distribution and sale operations. The Logistics segment manages port terminal for containers, as well as railway networks. The Energy segment includes generation of electric power. The Company is controlled by Vicunha Acos SA.

About Carpenter Technology Corporation

Carpenter Technology Corporation is engaged in the manufacturing, fabrication and distribution of specialty metals. The Company’s segments include Specialty Alloys Operations (SAO) and Performance Engineered Products (PEP). Its SAO segment consists of alloy and stainless steel manufacturing operations. Its PEP segment includes the Dynamet titanium business, the Carpenter Powder Products business, the Amega West business, the Specialty Steel Supply business and the Latrobe and Mexico distribution businesses. It develops, manufactures and distributes cast/wrought and powder metal stainless steels, and special alloys, including high temperature (iron-nickel-cobalt base), stainless, corrosion resistant, controlled expansion alloys, ultra-high strength and implantable alloys, tool and die steels and other specialty metals, as well as cast/wrought titanium alloys. The Company manufactures and rents down-hole drilling tools and components used in the oil and gas industry.

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