Anglo American (OTCMKTS:NGLOY) versus Worthington Steel (NYSE:WS) Critical Contrast

Worthington Steel (NYSE:WS) and Anglo American (OTCMKTS:NGLOY) are both materials companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, dividends, earnings, profitability and risk.

Analyst Ratings

This is a breakdown of recent recommendations for Worthington Steel and Anglo American, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Worthington Steel	0	1	1	1	3.00
Anglo American	1	3	4	1	2.56

Worthington Steel presently has a consensus price target of $46.00, suggesting a potential upside of 31.84%. Anglo American has a consensus price target of $28.00, suggesting a potential upside of 0.11%. Given Worthington Steel’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Worthington Steel is more favorable than Anglo American.

Insider and Institutional Ownership

45.4% of Worthington Steel shares are owned by institutional investors. Comparatively, 0.0% of Anglo American shares are owned by institutional investors. 2.6% of Worthington Steel shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

Worthington Steel has a beta of 2.3, indicating that its share price is 130% more volatile than the S&P 500. Comparatively, Anglo American has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500.

Valuation & Earnings

This table compares Worthington Steel and Anglo American”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Worthington Steel	$3.44 billion	0.52	$8.50 million	$1.39	25.10
Anglo American	$18.55 billion	3.55	-$3.74 billion	N/A	N/A

Worthington Steel has higher earnings, but lower revenue than Anglo American.

Profitability

This table compares Worthington Steel and Anglo American’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Worthington Steel	0.50%	8.87%	4.89%
Anglo American	N/A	N/A	N/A

Dividends

Worthington Steel pays an annual dividend of $0.64 per share and has a dividend yield of 1.8%. Anglo American pays an annual dividend of $0.13 per share and has a dividend yield of 0.5%. Worthington Steel pays out 46.0% of its earnings in the form of a dividend.

Summary

Worthington Steel beats Anglo American on 10 of the 14 factors compared between the two stocks.

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.

About Anglo American

Anglo American plc operates as a mining company in the United Kingdom and internationally. It explores for rough and polished diamonds, copper, platinum group metals and nickel, steelmaking coal, and iron ore; and nickel, polyhalite, and manganese ores. Anglo American plc was founded in 1917 and is headquartered in London, the United Kingdom.