Steel Dynamics (NASDAQ: STLD) is one of 28 public companies in the “Steel” industry, but how does it contrast to its rivals? We will compare Steel Dynamics to related companies based on the strength of its profitability, dividends, valuation, risk, earnings, institutional ownership and analyst recommendations.

Analyst Ratings

This is a summary of recent ratings and target prices for Steel Dynamics and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Steel Dynamics 0 4 11 0 2.73
Steel Dynamics Competitors 331 968 1013 36 2.32

Steel Dynamics presently has a consensus price target of $41.07, indicating a potential upside of 23.88%. As a group, “Steel” companies have a potential upside of 11.33%. Given Steel Dynamics’ stronger consensus rating and higher possible upside, equities analysts clearly believe Steel Dynamics is more favorable than its rivals.

Risk & Volatility

Steel Dynamics has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500. Comparatively, Steel Dynamics’ rivals have a beta of 1.37, suggesting that their average share price is 37% more volatile than the S&P 500.

Dividends

Steel Dynamics pays an annual dividend of $0.62 per share and has a dividend yield of 1.9%. Steel Dynamics pays out 28.6% of its earnings in the form of a dividend. As a group, “Steel” companies pay a dividend yield of 2.2% and pay out 60.2% of their earnings in the form of a dividend.

Profitability

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

Net Margins Return on Equity Return on Assets
Steel Dynamics 6.07% 21.75% 9.34%
Steel Dynamics Competitors -1,550.91% 3.59% 2.20%

Institutional & Insider Ownership

82.6% of Steel Dynamics shares are owned by institutional investors. Comparatively, 58.1% of shares of all “Steel” companies are owned by institutional investors. 4.2% of Steel Dynamics shares are owned by insiders. Comparatively, 7.6% of shares of all “Steel” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Steel Dynamics and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Steel Dynamics $8.77 billion $1.37 billion 15.28
Steel Dynamics Competitors $7.78 billion $1.01 billion 32.74

Steel Dynamics has higher revenue and earnings than its rivals. Steel Dynamics is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Steel Dynamics beats its rivals on 10 of the 15 factors compared.

About Steel Dynamics

Steel Dynamics, Inc. is a steel producing and a metal recycling company. The Company is engaged in the manufacture and sale of steel products, processing and sale of recycled ferrous and nonferrous metals, and fabrication and sale of steel joists and deck products. Its segments include steel operations, metals recycling operations, steel fabrication operations and Other Operations. It offers a range of steel products, such as sheet products, long products and steel finishing. The steel operations segment includes Butler Flat Roll Division, Columbus Flat Roll Division, The Techs galvanizing lines, Structural and Rail Division, Engineered Bar Products Division, Roanoke Bar Division, Steel of West Virginia and Iron Dynamics. The metals recycling operations segment consists of OmniSource Corporation. The fabrication operations produce steel building components. The Other Operations segment consists of subsidiary operations and smaller joint ventures.

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