Financial Contrast: Outokumpu Oyj (OTCMKTS:OUTKY) vs. Companhia Siderúrgica Nacional (NYSE:SID)

Companhia Siderúrgica Nacional (NYSE:SID) and Outokumpu Oyj (OTCMKTS:OUTKY) are both basic materials companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, institutional ownership and profitability.

Dividends

Companhia Siderúrgica Nacional pays an annual dividend of $0.42 per share and has a dividend yield of 16.8%. Outokumpu Oyj pays an annual dividend of $0.09 per share and has a dividend yield of 3.4%. Companhia Siderúrgica Nacional pays out -1,400.0% of its earnings in the form of a dividend. Outokumpu Oyj pays out 8.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Companhia Siderúrgica Nacional is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

2.4% of Companhia Siderúrgica Nacional shares are held by institutional investors. 0.0% of Companhia Siderúrgica Nacional shares 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.

Risk & Volatility

Companhia Siderúrgica Nacional has a beta of 1.75, indicating that its stock price is 75% more volatile than the S&P 500. Comparatively, Outokumpu Oyj has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Companhia Siderúrgica Nacional and Outokumpu Oyj, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Companhia Siderúrgica Nacional	3	2	0	0	1.40
Outokumpu Oyj	1	1	1	0	2.00

Companhia Siderúrgica Nacional currently has a consensus price target of $2.30, suggesting a potential downside of 8.00%. Given Companhia Siderúrgica Nacional’s higher probable upside, equities research analysts plainly believe Companhia Siderúrgica Nacional is more favorable than Outokumpu Oyj.

Earnings & Valuation

This table compares Companhia Siderúrgica Nacional and Outokumpu Oyj’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Companhia Siderúrgica Nacional	$8.59 billion	0.40	$301.02 million	($0.03)	-83.33
Outokumpu Oyj	$9.12 billion	N/A	$654.25 million	$1.11	2.38

Outokumpu Oyj has higher revenue and earnings than Companhia Siderúrgica Nacional. Companhia Siderúrgica Nacional is trading at a lower price-to-earnings ratio than Outokumpu Oyj, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Companhia Siderúrgica Nacional and Outokumpu Oyj’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Companhia Siderúrgica Nacional	-0.45%	-0.90%	-0.23%
Outokumpu Oyj	N/A	N/A	N/A

Summary

Outokumpu Oyj beats Companhia Siderúrgica Nacional on 9 of the 15 factors compared between the two stocks.

About Companhia Siderúrgica Nacional

Companhia Siderúrgica Nacional operates as an integrated steel producer in Brazil and Latin America. It operates through five segments: Steel, Mining, Logistics, Energy, and Cement. The company offers flat steel products, such as high, medium, low carbon, micro-alloyed, ultra-low-carbon, and interstitial free slabs; hot-rolled products, including heavy and light-gauge hot-rolled coils and sheets; cold-rolled products comprising cold-rolled coils and sheets; galvanized products; tin mill products consisting of flat-rolled low-carbon steel coils or sheets; and profiles, channels, UPE sections, and steel sleepers for the distribution, packaging, automotive, home appliance, and construction industries. It primarily 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. In addition, the company operates railway and port facilities; produces and sells cement to construction material stores, home centers, concrete producers, construction companies, mortar industries, and cement artifact producers; and generates electric power from its thermoelectric co-generation and hydroelectric power plants. Companhia Siderúrgica Nacional was incorporated in 1941 and is headquartered in São Paulo, Brazil. Companhia Siderúrgica Nacional is a subsidiary of Vicunha Aços S.A.

About Outokumpu Oyj

Outokumpu Oyj produces and sells various stainless steel products in Finland, other European countries, North America, the Asia-Pacific, and internationally. The company offers cold rolled coils, strips, and sheets; precision strips; hot rolled coils, strips, and plates; quarto plates; precise components, including welded stainless-steel I-beams, H-beams, hollow-section tubes, bent profiles, structural sections, press plates, roll shells, and blancs and disks; long products, which includes wire rods, wires, bars, rebars, billets, blooms, slabs, and ingots; and forged and rolled billets. Its products are used in various applications, including commercial kitchen, cooking, food industry, and home appliances; automotive and transportation; building and infrastructure; energy and marine; and heavy industries. The company was founded in 1910 and is headquartered in Helsinki, Finland.