Financial Comparison: Oceanagold (NYSE:OGC) & National Steel (NYSE:SID)

National Steel (NYSE:SID) and Oceanagold (NYSE:OGC) are both materials companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, risk, institutional ownership and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
National Steel	-5.26%	-14.90%	-2.38%
Oceanagold	35.14%	36.44%	26.57%

Dividends

National Steel pays an annual dividend of $0.09 per share and has a dividend yield of 7.9%. Oceanagold pays an annual dividend of $0.36 per share and has a dividend yield of 1.3%. National Steel pays out -26.5% of its earnings in the form of a dividend. Oceanagold pays out 18.1% 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. National Steel is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for National Steel and Oceanagold, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
National Steel	3	0	0	0	1.00
Oceanagold	0	1	1	2	3.25

National Steel currently has a consensus price target of $1.40, suggesting a potential upside of 23.35%. Given National Steel’s higher probable upside, equities research analysts clearly believe National Steel is more favorable than Oceanagold.

Valuation & Earnings

This table compares National Steel and Oceanagold”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
National Steel	$45.11 billion	0.03	-$358.62 million	($0.34)	-3.34
Oceanagold	$1.89 billion	3.27	$628.70 million	$1.99	14.04

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

Summary

Oceanagold beats National Steel on 10 of the 14 factors compared between the two stocks.

About National Steel

Companhia Siderúrgica Nacional operates as an integrated steel producer in Brazil and Latin America. It operates through five segments: Steel Industry, Mining, Logistics, Energy, and Cement. The company offers flat steel products, such as hot and cold rolled, galvanized, galvalume, pre-painted, and metal sheets products; coil, sheets, and derivatives; tiles and derivatives, pipes, and profiles; long steel products; steel packaging solutions for the food industry; chemical packaging solution; and carbochemical products. It also provides steel cutting services; produces and sells cement; operates railway and port facilities; and generates electric power from its thermoelectric co-generation and hydroelectric power plants. In addition, the company explores for iron ore reserves at Casa de Pedra and Engenho mines located in the city of Congonhas; and limestone and dolomite at the Bocaina mine located in the city of Arcos in the state of Minas Gerais, Brazil, as well as produces tin. Companhia Siderúrgica Nacional was founded in 1941 and is headquartered in São Paulo, Brazil.

About Oceanagold

OceanaGold Corporation is an intermediate gold and copper producer. OceanaGold Corporation is based in VANCOUVER, BC.