National Steel (SID) and The Competition Critical Contrast

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

Dividends

National Steel pays an annual dividend of $0.09 per share and has a dividend yield of 10.3%. National Steel pays out -26.5% of its earnings in the form of a dividend. As a group, “Metals & Mining” companies pay a dividend yield of 10.3% and pay out 10.8% of their earnings in the form of a dividend. National Steel is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

15.9% of shares of all “Metals & Mining” companies are owned by institutional investors. 0.0% of National Steel shares are owned by insiders. Comparatively, 17.5% of shares of all “Metals & Mining” companies are owned by 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
National Steel	-5.26%	-14.90%	-2.38%
National Steel Competitors	-1,168,050,136,845,918,000.00%	-50.94%	-2.11%

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
National Steel	$45.11 billion	-$358.62 million	-2.56
National Steel Competitors	$5.18 billion	$279.56 million	-47.14

National Steel has higher revenue, but lower earnings than its competitors. National Steel 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.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for National Steel and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
National Steel	3	0	0	0	1.00
National Steel Competitors	6390	22553	32226	1789	2.47

National Steel presently has a consensus target price of $1.40, suggesting a potential upside of 60.92%. As a group, “Metals & Mining” companies have a potential upside of 27.87%. Given National Steel’s higher possible upside, analysts plainly believe National Steel is more favorable than its competitors.

Volatility and Risk

National Steel has a beta of 1.55, meaning that its stock price is 55% more volatile than the S&P 500. Comparatively, National Steel’s competitors have a beta of 1.02, meaning that their average stock price is 2% more volatile than the S&P 500.

Summary

National Steel beats its competitors on 8 of the 15 factors compared.

About National Steel

Companhia Siderúrgica Nacional operates as an integrated steel producer in Brazil and Latin America. It operates through five segments: Steel Industry, Mining, Logistics, Energy, and Cement. The company offers flat steel products, such as hot and cold rolled, galvanized, galvalume, pre-painted, and metal sheets products; coil, sheets, and derivatives; tiles and derivatives, pipes, and profiles; long steel products; steel packaging solutions for the food industry; chemical packaging solution; and carbochemical products. It also provides steel cutting services; produces and sells cement; operates railway and port facilities; and generates electric power from its thermoelectric co-generation and hydroelectric power plants. In addition, the company explores for iron ore reserves at Casa de Pedra and Engenho mines located in the city of Congonhas; and limestone and dolomite at the Bocaina mine located in the city of Arcos in the state of Minas Gerais, Brazil, as well as produces tin. Companhia Siderúrgica Nacional was founded in 1941 and is headquartered in São Paulo, Brazil.