Comparing AK Steel (AKS) & Its Competitors

AK Steel (NYSE: AKS) is one of 22 public companies in the “Blast furnaces & steel mills” industry, but how does it compare to its competitors? We will compare AK Steel to similar companies based on the strength of its dividends, risk, earnings, valuation, profitability, analyst recommendations and institutional ownership.

Analyst Recommendations

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This is a breakdown of recent ratings for AK Steel and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AK Steel 1 9 5 0 2.27
AK Steel Competitors 306 907 1078 54 2.38

AK Steel currently has a consensus target price of $6.57, suggesting a potential upside of 40.72%. As a group, “Blast furnaces & steel mills” companies have a potential upside of 10.39%. Given AK Steel’s higher possible upside, equities research analysts plainly believe AK Steel is more favorable than its competitors.

Volatility and Risk

AK Steel has a beta of 2.89, suggesting that its stock price is 189% more volatile than the S&P 500. Comparatively, AK Steel’s competitors have a beta of 1.39, suggesting that their average stock price is 39% more volatile than the S&P 500.

Insider and Institutional Ownership

67.8% of AK Steel shares are held by institutional investors. Comparatively, 65.2% of shares of all “Blast furnaces & steel mills” companies are held by institutional investors. 1.1% of AK Steel shares are held by company insiders. Comparatively, 4.0% of shares of all “Blast furnaces & steel mills” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares AK Steel and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
AK Steel $6.08 billion $6.19 million 15.06
AK Steel Competitors $12.33 billion $652.37 million 15.75

AK Steel’s competitors have higher revenue and earnings than AK Steel. AK Steel is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares AK Steel and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AK Steel 0.16% 71.24% 2.64%
AK Steel Competitors 4.25% 10.74% 3.42%

Summary

AK Steel competitors beat AK Steel on 9 of the 13 factors compared.

AK Steel Company Profile

AK Steel Holding Corporation, through its subsidiary, AK Steel Corporation, produces flat-rolled carbon, stainless, and electrical steels, and tubular products in the United States and internationally. It produces flat-rolled carbon steel products, including coated, cold-rolled, and hot-rolled carbon steel products; grain-oriented specialty stainless and electrical steels; and carbon and stainless steel tubing products. The company also buys and sells steel and steel products, as well as other materials; and produces metallurgical coal from reserves in Somerset County, Pennsylvania. It sells its flat-rolled carbon steel products primarily to automotive manufacturers; customers in the infrastructure and manufacturing markets, including the manufacturers of power transmission and distribution transformers, who produce equipment for the electrical grid, as well as electrical motors and generators; and manufacturers of heating, ventilation and air conditioning equipment, and appliances. The company also sells its carbon steel products to distributors, service centers, and converters. AK Steel Holding Corporation was founded in 1993 and is headquartered in West Chester, Ohio.

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