Olympic Steel (NASDAQ: ZEUS) is one of 28 publicly-traded companies in the “Steel” industry, but how does it compare to its peers? We will compare Olympic Steel to related businesses based on the strength of its risk, valuation, profitability, institutional ownership, earnings, dividends and analyst recommendations.

Profitability

This table compares Olympic Steel and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Olympic Steel 0.71% 2.82% 1.26%
Olympic Steel Competitors -1,551.00% 3.57% 2.15%

Volatility & Risk

Olympic Steel has a beta of 1.72, suggesting that its share price is 72% more volatile than the S&P 500. Comparatively, Olympic Steel’s peers have a beta of 1.37, suggesting that their average share price is 37% more volatile than the S&P 500.

Earnings & Valuation

This table compares Olympic Steel and its peers top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Olympic Steel $1.21 billion $36.12 million 26.20
Olympic Steel Competitors $7.78 billion $1.01 billion 32.68

Olympic Steel’s peers have higher revenue and earnings than Olympic Steel. Olympic Steel is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Insider and Institutional Ownership

68.1% of Olympic Steel shares are held by institutional investors. Comparatively, 58.1% of shares of all “Steel” companies are held by institutional investors. 18.3% of Olympic Steel shares are held by company insiders. Comparatively, 7.6% of shares of all “Steel” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Dividends

Olympic Steel pays an annual dividend of $0.08 per share and has a dividend yield of 0.4%. Olympic Steel pays out 10.7% 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.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Olympic Steel and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Olympic Steel 0 2 1 0 2.33
Olympic Steel Competitors 331 967 1012 35 2.32

Olympic Steel presently has a consensus price target of $22.33, suggesting a potential upside of 13.66%. As a group, “Steel” companies have a potential upside of 12.31%. Given Olympic Steel’s stronger consensus rating and higher possible upside, analysts clearly believe Olympic Steel is more favorable than its peers.

Summary

Olympic Steel peers beat Olympic Steel on 8 of the 15 factors compared.

About Olympic Steel

Olympic Steel, Inc. is a metals service center. The Company provides metals processing and distribution services for a range of customers. The Company operates through three segments: carbon flat products, specialty metals flat products, and tubular and pipe products. The Company’s carbon flat products segment’s focus is on the direct sale and distribution of large volumes of processed carbon and coated flat-rolled sheet, coil and plate products and fabricated parts. The Company’s specialty metals flat products segment’s focus is on the direct sale and distribution of processed aluminum and stainless flat-rolled sheet and coil products, flat bar products and fabricated parts. The Company’s tubular and pipe products segment consists of the Chicago Tube and Iron Company (CTI) business. Through its tubular and pipe products segment, it distributes metals tubing, pipe, bar, valve and fittings, and fabricate pressure parts supplied to various industrial markets.

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