NUE vs. STLD, MT, NEM, DOW, LYB, APD, AEM, DD, PPG, and GOLD
Should you be buying Nucor stock or one of its competitors? The main competitors of Nucor include Steel Dynamics (STLD), ArcelorMittal (MT), Newmont (NEM), DOW (DOW), LyondellBasell Industries (LYB), Air Products and Chemicals (APD), Agnico Eagle Mines (AEM), DuPont de Nemours (DD), PPG Industries (PPG), and Barrick Gold (GOLD). These companies are all part of the "basic materials" sector.
Nucor (NYSE:NUE) and Steel Dynamics (NASDAQ:STLD) are both large-cap basic materials companies, but which is the superior stock? We will compare the two companies based on the strength of their community ranking, media sentiment, risk, institutional ownership, valuation, profitability, dividends, earnings and analyst recommendations.
Nucor has higher revenue and earnings than Steel Dynamics. Steel Dynamics is trading at a lower price-to-earnings ratio than Nucor, indicating that it is currently the more affordable of the two stocks.
Nucor presently has a consensus price target of $193.14, suggesting a potential upside of 10.10%. Steel Dynamics has a consensus price target of $121.17, suggesting a potential downside of 9.60%. Given Nucor's stronger consensus rating and higher possible upside, analysts clearly believe Nucor is more favorable than Steel Dynamics.
In the previous week, Nucor had 18 more articles in the media than Steel Dynamics. MarketBeat recorded 51 mentions for Nucor and 33 mentions for Steel Dynamics. Steel Dynamics' average media sentiment score of 1.10 beat Nucor's score of 0.19 indicating that Steel Dynamics is being referred to more favorably in the news media.
Steel Dynamics has a net margin of 12.89% compared to Nucor's net margin of 12.40%. Steel Dynamics' return on equity of 27.62% beat Nucor's return on equity.
76.5% of Nucor shares are owned by institutional investors. Comparatively, 82.4% of Steel Dynamics shares are owned by institutional investors. 0.5% of Nucor shares are owned by company insiders. Comparatively, 6.0% of Steel Dynamics shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Nucor pays an annual dividend of $2.16 per share and has a dividend yield of 1.2%. Steel Dynamics pays an annual dividend of $1.84 per share and has a dividend yield of 1.4%. Nucor pays out 12.7% of its earnings in the form of a dividend. Steel Dynamics pays out 12.6% 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. Steel Dynamics is clearly the better dividend stock, given its higher yield and lower payout ratio.
Steel Dynamics received 156 more outperform votes than Nucor when rated by MarketBeat users. Likewise, 68.36% of users gave Steel Dynamics an outperform vote while only 64.45% of users gave Nucor an outperform vote.
Nucor has a beta of 1.61, indicating that its stock price is 61% more volatile than the S&P 500. Comparatively, Steel Dynamics has a beta of 1.42, indicating that its stock price is 42% more volatile than the S&P 500.
Summary
Nucor and Steel Dynamics tied by winning 10 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding NUE and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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