Contrasting Steel Dynamics (STLD) & Its Peers

Steel Dynamics (NASDAQ:STLD) is one of 1,984 public companies in the “Metals & Mining” industry, but how does it compare to its competitors? We will compare Steel Dynamics to related businesses based on the strength of its valuation, dividends, earnings, risk, analyst recommendations, institutional ownership and profitability.

Risk and Volatility

Steel Dynamics has a beta of 1.45, suggesting that its stock price is 45% more volatile than the S&P 500. Comparatively, Steel Dynamics’ competitors have a beta of 0.96, suggesting that their average stock price is 4% less volatile than the S&P 500.

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	8.82%	21.57%	11.61%
Steel Dynamics Competitors	-1,168,050,136,845,918,000.00%	-53.06%	-2.08%

Institutional and Insider Ownership

82.4% of Steel Dynamics shares are owned by institutional investors. Comparatively, 16.0% of shares of all “Metals & Mining” companies are owned by institutional investors. 6.6% of Steel Dynamics shares are owned by company insiders. Comparatively, 17.6% of shares of all “Metals & Mining” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Steel Dynamics and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Steel Dynamics	$18.18 billion	$1.19 billion	16.79
Steel Dynamics Competitors	$4.65 billion	$278.94 million	-26.28

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

Dividends

Steel Dynamics pays an annual dividend of $2.12 per share and has a dividend yield of 0.9%. Steel Dynamics pays out 15.6% of its earnings in the form of a dividend. As a group, “Metals & Mining” companies pay a dividend yield of 9.9% and pay out 10.8% of their earnings in the form of a dividend. Steel Dynamics has increased its dividend for 13 consecutive years. Steel Dynamics lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Steel Dynamics and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Steel Dynamics	0	4	9	0	2.69
Steel Dynamics Competitors	6410	22614	32314	1801	2.47

Steel Dynamics currently has a consensus price target of $275.17, indicating a potential upside of 20.92%. As a group, “Metals & Mining” companies have a potential upside of 23.25%. Given Steel Dynamics’ competitors higher probable upside, analysts plainly believe Steel Dynamics has less favorable growth aspects than its competitors.

Summary

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

About Steel Dynamics

Steel Dynamics, Inc., together with its subsidiaries, operates as a steel producer and metal recycler in the United States. The Steel Operations segment offers hot rolled, cold rolled, and coated steel products; parallel flange beams and channel sections, flat bars, large unequal leg angles, and reinforcing steel bars, as well as standard strength carbon, intermediate alloy hardness, and premium grade rail products; engineered special-bar-quality products, merchant-bar-quality products, and other engineered round steel bars; channels, angles, flats, merchant rounds, and reinforcing steel bars; and specialty shapes and light structural steel products. This segment also engages in turning, polishing, straightening, chamfering, precision saw-cutting, and heat treating of bar products. Its products are used in construction, automotive, manufacturing, transportation, heavy and agriculture equipment, and pipe and tube markets. The Metals Recycling Operations segment is involved in the ferrous and nonferrous scrap metal processing, transportation, marketing, brokerage, and scrap management services. Its ferrous products include heavy melting steel, busheling, bundled scrap, shredded scrap, steel turnings, and cast-iron products; and nonferrous products comprise aluminum, brass, copper, stainless steel, and other nonferrous metals. The Steel Fabrication Operations segment produces steel non-residential building components, such as steel joists, girders, trusses, and steel deck products for non-residential steel fabricators, metal building companies, general construction contractors, developers, owners, brokers, and governmental entities, as well as e-commerce warehouses, data centers, metal buildings, and education and commercial building projects. The Aluminum Operations segment offers recycled aluminum flat rolled products. The company also exports its products. Steel Dynamics, Inc. was founded in 1993 and is headquartered in Fort Wayne, Indiana.