Nippon Steel (OTCMKTS:NPSCY – Get Free Report) and Worthington Steel (NYSE:WS – Get Free Report) are both basic materials companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, analyst recommendations, valuation, risk and institutional ownership.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Nippon Steel and Worthington Steel, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Nippon Steel | 0 | 0 | 0 | 0 | N/A |
Worthington Steel | 0 | 1 | 1 | 0 | 2.50 |
Worthington Steel has a consensus target price of $40.00, indicating a potential upside of 25.47%. Given Worthington Steel’s higher possible upside, analysts plainly believe Worthington Steel is more favorable than Nippon Steel.
Profitability
Net Margins | Return on Equity | Return on Assets | |
Nippon Steel | 7.19% | 12.53% | 6.05% |
Worthington Steel | N/A | N/A | N/A |
Dividends
Nippon Steel pays an annual dividend of $0.25 per share and has a dividend yield of 3.4%. Worthington Steel pays an annual dividend of $0.64 per share and has a dividend yield of 2.0%. Nippon Steel pays out 17.2% of its earnings in the form of a dividend.
Earnings and Valuation
This table compares Nippon Steel and Worthington Steel’s top-line revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Nippon Steel | $59.04 billion | 0.35 | $5.14 billion | $1.45 | 5.06 |
Worthington Steel | N/A | N/A | N/A | N/A | N/A |
Nippon Steel has higher revenue and earnings than Worthington Steel.
Institutional & Insider Ownership
45.4% of Worthington Steel shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Summary
Nippon Steel beats Worthington Steel on 5 of the 9 factors compared between the two stocks.
About Nippon Steel
Nippon Steel Corporation engages in steelmaking and steel fabrication, engineering and construction, chemicals and materials, and system solutions businesses in Japan and internationally. The company offers steel plates, sheets, and slags; bar and rod materials; structural steel; pipes and tubes; titanium and stainless products; and railway, automotive, and machinery parts for applications in automotive, energy, infrastructure, and consumer electronics markets. It is also involved in construction; waste processing and recycling; supplying electricity, gas, and heat; and the provision of coal-based chemical products, petrochemicals, electronic materials, materials and components for semiconductors and electronic parts, carbon fiber, and composite products. In addition, the company offers computer systems engineering and consulting, IT-enabled outsourcing, and other services. The company was formerly known as Nippon Steel & Sumitomo Metal Corporation and changed its name to Nippon Steel Corporation in April 2019. The company was incorporated in 1950 and is headquartered in Tokyo, Japan.
About Worthington Steel
Worthington Steel, Inc. operates as a steel processor in North America. It offers carbon flat-rolled steel and tailor welded blanks, as well as electrical steel laminations; and aluminum tailor welded blanks. The company serves various end-markets, including automotive, heavy truck, agriculture, construction, and energy. Worthington Steel, Inc. was incorporated in 2023 and is based in Columbus, Ohio.
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