Contrasting National Steel (SID) and Dynamic Materials Corp. (BOOM)
National Steel (NYSE: SID) and Dynamic Materials Corp. (NASDAQ:BOOM) are both basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, analyst recommendations, profitability, risk and earnings.
Valuation and Earnings
This table compares National Steel and Dynamic Materials Corp.’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|National Steel||$5.15 billion||0.90||$921.64 million||$0.25||13.68|
|Dynamic Materials Corp.||$162.88 million||1.37||$7.00 million||($0.57)||-26.49|
National Steel has higher revenue and earnings than Dynamic Materials Corp.. Dynamic Materials Corp. is trading at a lower price-to-earnings ratio than National Steel, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings and target prices for National Steel and Dynamic Materials Corp., as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Dynamic Materials Corp.||0||0||1||0||3.00|
Dynamic Materials Corp. has a consensus target price of $19.00, suggesting a potential upside of 25.83%. Given Dynamic Materials Corp.’s stronger consensus rating and higher possible upside, analysts clearly believe Dynamic Materials Corp. is more favorable than National Steel.
Insider and Institutional Ownership
3.2% of National Steel shares are owned by institutional investors. Comparatively, 86.0% of Dynamic Materials Corp. shares are owned by institutional investors. 5.1% of Dynamic Materials Corp. shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Risk & Volatility
National Steel has a beta of 2.28, indicating that its share price is 128% more volatile than the S&P 500. Comparatively, Dynamic Materials Corp. has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500.
This table compares National Steel and Dynamic Materials Corp.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Dynamic Materials Corp.||-5.01%||-6.38%||-4.39%|
Dynamic Materials Corp. pays an annual dividend of $0.08 per share and has a dividend yield of 0.5%. National Steel does not pay a dividend. Dynamic Materials Corp. pays out -14.0% of its earnings in the form of a dividend. Dynamic Materials Corp. has raised its dividend for 2 consecutive years.
Dynamic Materials Corp. beats National Steel on 9 of the 16 factors compared between the two stocks.
National Steel Company Profile
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.
Dynamic Materials Corp. Company Profile
DMC Global Inc., formerly Dynamic Materials Corporation, is a diversified technology company. The Company operates a family of technical product and process businesses serving the energy, industrial and infrastructure markets. The Company’s businesses operate through an international network of manufacturing, distribution and sales facilities. The Company’s segments are NobelClad and DynaEnergetics. The NobelClad segment is engaged in the production of explosion-welded clad metal plates for use in the construction of corrosion resistant industrial processing equipment and specialized transition joints. The DynaEnergetics segment manufactures, markets and sells oilfield perforating equipment and explosives, including detonating cords, detonators, bi-directional boosters and shaped charges, and seismic related explosives and accessories. It owns explosive metalworking and metallic processes, and registered trademarks, including Detaclad, Detacouple, EFTEK, ETJ 2000 and NOBELCLAD.
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