United States Steel Corporation (X) vs. National Steel (SID) Financial Analysis

National Steel (NYSE: SID) and United States Steel Corporation (NYSE:X) are both mid-cap basic materials companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, dividends, institutional ownership, risk, earnings, profitability and analyst recommendations.

Profitability

This table compares National Steel and United States Steel Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
National Steel N/A N/A N/A
United States Steel Corporation 0.24% 6.50% 1.67%

Analyst Recommendations

This is a breakdown of current recommendations for National Steel and United States Steel Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
National Steel 0 0 0 0 N/A
United States Steel Corporation 4 7 7 0 2.17

United States Steel Corporation has a consensus price target of $27.03, suggesting a potential upside of 14.04%. Given United States Steel Corporation’s higher probable upside, analysts plainly believe United States Steel Corporation is more favorable than National Steel.

Dividends

United States Steel Corporation pays an annual dividend of $0.20 per share and has a dividend yield of 0.8%. National Steel does not pay a dividend. United States Steel Corporation pays out 125.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. United States Steel Corporation has increased its dividend for 2 consecutive years.

Institutional and Insider Ownership

3.4% of National Steel shares are held by institutional investors. Comparatively, 69.0% of United States Steel Corporation shares are held by institutional investors. 1.0% of United States Steel Corporation shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares National Steel and United States Steel Corporation’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
National Steel $5.23 billion 0.67 $935.96 million $0.25 10.28
United States Steel Corporation $11.21 billion 0.37 $838.00 million $0.16 148.13

National Steel has higher revenue, but lower earnings than United States Steel Corporation. National Steel is trading at a lower price-to-earnings ratio than United States Steel Corporation, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

National Steel has a beta of 2.27, indicating that its share price is 127% more volatile than the S&P 500. Comparatively, United States Steel Corporation has a beta of 2.88, indicating that its share price is 188% more volatile than the S&P 500.

Summary

United States Steel Corporation beats National Steel on 12 of the 16 factors compared between the two stocks.

National Steel Company Profile

Companhia Siderurgica Nacional is a Brazil-based company engaged in the steel industry. The Company operates throughout the entire steel production chain, from the mining of iron ore to the production and sale of a range of steel products, including coated galvanized flat steel and tinplate. The Company operates in five segments: Steel, Mining, Cement, Logistics and Energy. The Steel segment focuses on the production, distribution and sale of flat steel, long steel, metallic containers and galvanized steel, with operations in Brazil, the United States, Portugal and Germany. The Mining segment encompasses the activities of iron ore and tin mining. The Cement segment is responsible for the cement production, distribution and sale operations. The Logistics segment manages port terminal for containers, as well as railway networks. The Energy segment includes generation of electric power. The Company is controlled by Vicunha Acos SA.

United States Steel Corporation Company Profile

United States Steel Corporation is an integrated steel producer. The Company is engaged in producing flat-rolled and tubular products with production operations in North America and Europe. The Company operates through three segments: Flat-Rolled Products (Flat-Rolled), U. S. Steel Europe (USSE) and Tubular Products (Tubular). The Flat-Rolled segment includes the operating results of its integrated steel plants and equity investees in the United States involved in the production of slabs, rounds, strip mill plates, sheets and tin mill products, as well as all iron ore and coke production facilities in the United States. The USSE segment includes the operating results of U. S. Steel Kosice (USSK) and its integrated steel plant and coke production facilities in Slovakia. The Tubular segment includes the operating results of its tubular production facilities, primarily in the United States and equity investees in the United States and Brazil.

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