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

Insider & Institutional Ownership

82.6% of Steel Dynamics shares are held by institutional investors. Comparatively, 52.1% of shares of all “Steel” companies are held by institutional investors. 4.2% of Steel Dynamics shares are held by insiders. Comparatively, 12.1% of shares of all “Steel” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations for Steel Dynamics and its competitors, 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 330 965 1012 35 2.32

Steel Dynamics currently has a consensus price target of $41.07, indicating a potential upside of 20.51%. As a group, “Steel” companies have a potential upside of 9.73%. Given Steel Dynamics’ stronger consensus rating and higher possible upside, equities analysts clearly believe Steel Dynamics is more favorable than its competitors.

Volatility & Risk

Steel Dynamics has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500. Comparatively, Steel Dynamics’ competitors have a beta of 1.37, suggesting that their average stock 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 1.8%. 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.

Valuation & Earnings

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

Gross Revenue EBITDA Price/Earnings Ratio
Steel Dynamics $8.77 billion $1.37 billion 15.71
Steel Dynamics Competitors $7.58 billion $993.44 million 33.56

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

Profitability

This table compares Steel Dynamics and its competitors’ 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%

Summary

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

Steel Dynamics Company Profile

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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