Head-To-Head Contrast: Schnitzer Steel Industries (SCHN) vs. Universal Stainless & Alloy Products (USAP)
Schnitzer Steel Industries (NASDAQ: SCHN) and Universal Stainless & Alloy Products (NASDAQ:USAP) are both small-cap basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, risk, institutional ownership, valuation, dividends and profitability.
Institutional & Insider Ownership
84.5% of Schnitzer Steel Industries shares are owned by institutional investors. Comparatively, 84.3% of Universal Stainless & Alloy Products shares are owned by institutional investors. 3.8% of Schnitzer Steel Industries shares are owned by company insiders. Comparatively, 11.6% of Universal Stainless & Alloy Products shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Risk & Volatility
Schnitzer Steel Industries has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500. Comparatively, Universal Stainless & Alloy Products has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500.
This table compares Schnitzer Steel Industries and Universal Stainless & Alloy Products’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Schnitzer Steel Industries||2.68%||8.34%||4.65%|
|Universal Stainless & Alloy Products||-1.20%||-0.91%||-0.55%|
Schnitzer Steel Industries pays an annual dividend of $0.75 per share and has a dividend yield of 3.0%. Universal Stainless & Alloy Products does not pay a dividend. Schnitzer Steel Industries pays out 49.0% of its earnings in the form of a dividend.
This is a breakdown of recent recommendations for Schnitzer Steel Industries and Universal Stainless & Alloy Products, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Schnitzer Steel Industries||0||1||0||0||2.00|
|Universal Stainless & Alloy Products||0||0||2||0||3.00|
Universal Stainless & Alloy Products has a consensus target price of $19.00, indicating a potential upside of 5.38%. Given Universal Stainless & Alloy Products’ stronger consensus rating and higher probable upside, analysts clearly believe Universal Stainless & Alloy Products is more favorable than Schnitzer Steel Industries.
Valuation & Earnings
This table compares Schnitzer Steel Industries and Universal Stainless & Alloy Products’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Schnitzer Steel Industries||$1.58 billion||0.44||$90.43 million||$1.53||16.44|
|Universal Stainless & Alloy Products||$175.29 million||0.74||$17.87 million||($0.29)||-62.17|
Schnitzer Steel Industries has higher revenue and earnings than Universal Stainless & Alloy Products. Universal Stainless & Alloy Products is trading at a lower price-to-earnings ratio than Schnitzer Steel Industries, indicating that it is currently the more affordable of the two stocks.
Schnitzer Steel Industries beats Universal Stainless & Alloy Products on 9 of the 15 factors compared between the two stocks.
Schnitzer Steel Industries Company Profile
Schnitzer Steel Industries, Inc. is a recycler of ferrous and nonferrous scrap metal, including end-of-life vehicles, and a manufacturer of finished steel products. The Company operates through two segments: the Auto and Metals Recycling (AMR) business and the Steel Manufacturing Business (SMB). The AMR segment collects and recycles auto bodies, rail cars, home appliances, industrial machinery, manufacturing scrap and construction and demolition scrap from bridges, buildings and other infrastructure. AMR’s primary products include recycled ferrous and nonferrous scrap metal. The SMB segment produces finished steel products such as rebar, wire rod, coiled rebar, merchant bar and other specialty products using 100% recycled metal sourced from AMR. SMB’s products are primarily used in nonresidential and infrastructure construction in North America. SMB operates a steel mini-mill in McMinnville, Oregon that produces finished steel products using recycled metal and other raw materials.
Universal Stainless & Alloy Products Company Profile
Universal Stainless & Alloy Products, Inc. manufactures and markets semi-finished and finished specialty steel products, including stainless steel, nickel alloys, tool steel and certain other alloyed steels. The Company’s manufacturing process involves melting, remelting, heat treating, hot and cold rolling, forging, machining and cold drawing of semi-finished and finished specialty steels. The Company also performs conversion services on materials supplied by customers. The Company’s manufacturing locations include Bridgeville and Titusville, Pennsylvania; Dunkirk, New York, and North Jackson, Ohio. The Company produce a range of specialty steel grades using several manufacturing processes, including argon oxygen decarburization (AOD), electro-slag remelted (ESR), vacuum induction melting (VIM) and vacuum-arc remelted (VAR). It manufactures its products within the product lines, including Stainless Steel, High-Strength Low Alloy Steel, Tool Steel and High-Temperature Alloy Steel.
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