Worthington Industries (NYSE: WOR) and SSAB Svenskt Stal (OTCMKTS:SSAAY) are both mid-cap industrial products companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, risk, institutional ownership and valuation.
Risk & Volatility
Worthington Industries has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500. Comparatively, SSAB Svenskt Stal has a beta of 1.69, meaning that its share price is 69% more volatile than the S&P 500.
This table compares Worthington Industries and SSAB Svenskt Stal’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|SSAB Svenskt Stal||3.45%||4.36%||2.56%|
Insider & Institutional Ownership
52.7% of Worthington Industries shares are held by institutional investors. 31.3% of Worthington Industries shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This is a breakdown of current recommendations and price targets for Worthington Industries and SSAB Svenskt Stal, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|SSAB Svenskt Stal||0||0||0||0||N/A|
Worthington Industries currently has a consensus price target of $45.00, suggesting a potential downside of 1.16%. Given Worthington Industries’ higher probable upside, equities research analysts clearly believe Worthington Industries is more favorable than SSAB Svenskt Stal.
Worthington Industries pays an annual dividend of $0.84 per share and has a dividend yield of 1.8%. SSAB Svenskt Stal does not pay a dividend. Worthington Industries pays out 26.1% of its earnings in the form of a dividend. Worthington Industries has increased its dividend for 7 consecutive years.
Earnings & Valuation
This table compares Worthington Industries and SSAB Svenskt Stal’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Worthington Industries||$3.01 billion||0.93||$204.51 million||$3.22||14.14|
|SSAB Svenskt Stal||$7.74 billion||0.72||$269.01 million||$0.13||20.77|
SSAB Svenskt Stal has higher revenue and earnings than Worthington Industries. Worthington Industries is trading at a lower price-to-earnings ratio than SSAB Svenskt Stal, indicating that it is currently the more affordable of the two stocks.
Worthington Industries beats SSAB Svenskt Stal on 10 of the 15 factors compared between the two stocks.
About Worthington Industries
Worthington Industries, Inc. is a metals manufacturing company, focused on value-added steel processing and manufactured metal products. The Company’s segments include Steel Processing, Pressure Cylinders, Engineered Cabs and Other. The Steel Processing segment buys coils of steel from integrated steel mills and mini-mills, and also toll processes steel for steel mills, end users, service centers and other processors. The Pressure Cylinders segment manufactures and sells filled and unfilled pressure cylinders, tanks, hand torches, and oil and gas equipment along with various accessories and related products for end use market applications. The Engineered Cabs is a non-captive designer and manufacturer of custom-engineered open and enclosed cabs and operator stations and custom fabrications for heavy mobile equipment used in the agricultural, construction, forestry, mining and military industries. The Other segment includes Construction Services and Worthington Energy Innovations.
About SSAB Svenskt Stal
SSAB AB produces and sells steel products in Sweden and internationally. It operates in five segments: SSAB Special Steels, SSAB Europe, SSAB Americas, Tibnor, and Ruukki Construction. The company offers wear steels for maximum payload and service life; structural steel; prehardened tool steel; and protection plates. It also provides products include quenched and tempered plates, heavy plates, and various strip products, as well as tubes and sections, and infra products. In addition, the company offers hot- and cold-rolled, and heavy plate coils, as well as metal-coated and pre-painted products; beams, merchant bars, hollow sections, and rebars; and aluminum and copper stainless steel and non-ferrous metals. Further, it provides steel roofs, rainwater systems, and accessories; building components, such as sandwich panels, load-bearing sheets, and façade claddings; frame solutions; and design and installation services. Additionally, the company provides value added services and aftermarket services. SSAB AB markets its steel products primarily under the Hardox, Strenx, Docol, GreenCoat, Armox, and Toolox brands. It also exports its products. The company offers its products to heavy transport, construction, material handling, agriculture and forest machinery, automotive, energy, infrastructure, engineering, manufacturing, and mining industry customers. SSAB AB was founded in 1978 and is headquartered in Stockholm, Sweden.
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