MT vs. STLD, X, TX, CMC, NUE, WLK, CCJ, CE, FNV, and RS
Should you be buying ArcelorMittal stock or one of its competitors? The main competitors of ArcelorMittal include Steel Dynamics (STLD), United States Steel (X), Ternium (TX), Commercial Metals (CMC), Nucor (NUE), Westlake (WLK), Cameco (CCJ), Celanese (CE), Franco-Nevada (FNV), and Reliance (RS). These companies are all part of the "basic materials" sector.
ArcelorMittal (NYSE:MT) and Steel Dynamics (NASDAQ:STLD) are both large-cap basic materials companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, community ranking, media sentiment, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.
ArcelorMittal pays an annual dividend of $0.43 per share and has a dividend yield of 1.6%. Steel Dynamics pays an annual dividend of $1.84 per share and has a dividend yield of 1.4%. ArcelorMittal pays out 48.3% 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 has a net margin of 12.89% compared to ArcelorMittal's net margin of 1.15%. Steel Dynamics' return on equity of 27.62% beat ArcelorMittal's return on equity.
Steel Dynamics received 11 more outperform votes than ArcelorMittal when rated by MarketBeat users. Likewise, 68.36% of users gave Steel Dynamics an outperform vote while only 63.02% of users gave ArcelorMittal an outperform vote.
Steel Dynamics has lower revenue, but higher earnings than ArcelorMittal. Steel Dynamics is trading at a lower price-to-earnings ratio than ArcelorMittal, indicating that it is currently the more affordable of the two stocks.
In the previous week, Steel Dynamics had 14 more articles in the media than ArcelorMittal. MarketBeat recorded 17 mentions for Steel Dynamics and 3 mentions for ArcelorMittal. Steel Dynamics' average media sentiment score of 0.81 beat ArcelorMittal's score of 0.35 indicating that Steel Dynamics is being referred to more favorably in the news media.
9.9% of ArcelorMittal shares are held by institutional investors. Comparatively, 82.4% of Steel Dynamics shares are held by institutional investors. 0.1% of ArcelorMittal shares are held by company insiders. Comparatively, 6.0% of Steel Dynamics shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
ArcelorMittal has a beta of 1.93, suggesting that its share price is 93% more volatile than the S&P 500. Comparatively, Steel Dynamics has a beta of 1.47, suggesting that its share price is 47% more volatile than the S&P 500.
ArcelorMittal currently has a consensus target price of $30.30, indicating a potential upside of 14.60%. Steel Dynamics has a consensus target price of $121.17, indicating a potential downside of 9.53%. Given ArcelorMittal's stronger consensus rating and higher probable upside, equities research analysts clearly believe ArcelorMittal is more favorable than Steel Dynamics.
Summary
Steel Dynamics beats ArcelorMittal on 13 of the 19 factors compared between the two stocks.
Get ArcelorMittal News Delivered to You Automatically
Sign up to receive the latest news and ratings for MT and its competitors with MarketBeat's FREE daily newsletter.
This chart shows the number of new MarketBeat users adding MT 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.
ArcelorMittal Competitors List
Related Companies and Tools
