Worthington Steel (NYSE:WS) vs. Nippon Steel (OTCMKTS:NPSCY) Critical Survey

Worthington Steel (NYSE:WS) and Nippon Steel (OTCMKTS:NPSCY) are both basic materials companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, earnings, dividends, institutional ownership, risk and profitability.

Valuation and Earnings

This table compares Worthington Steel and Nippon Steel’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Worthington Steel	N/A	N/A	N/A	N/A	N/A
Nippon Steel	$59.04 billion	0.33	$5.14 billion	$1.45	4.77

Nippon Steel has higher revenue and earnings than Worthington Steel.

Analyst Recommendations

This is a breakdown of recent ratings for Worthington Steel and Nippon Steel, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Worthington Steel	0	1	1	0	2.50
Nippon Steel	0	0	0	0	N/A

Worthington Steel presently has a consensus target price of $40.00, indicating a potential upside of 24.65%. Given Worthington Steel’s higher possible upside, research analysts clearly believe Worthington Steel is more favorable than Nippon Steel.

Institutional & Insider Ownership

45.4% of Worthington Steel shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Worthington Steel and Nippon Steel’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Worthington Steel	N/A	N/A	N/A
Nippon Steel	7.19%	12.53%	6.05%

Dividends

Worthington Steel pays an annual dividend of $0.64 per share and has a dividend yield of 2.0%. Nippon Steel pays an annual dividend of $0.25 per share and has a dividend yield of 3.6%. Nippon Steel pays out 17.2% of its earnings in the form of a dividend.

Summary

Nippon Steel beats Worthington Steel on 5 of the 9 factors compared between the two stocks.

About Worthington Steel

Worthington Steel, Inc. operates as a steel processor in North America. It offers carbon flat-rolled steel and tailor welded blanks, as well as electrical steel laminations; and aluminum tailor welded blanks. The company serves various end-markets, including automotive, heavy truck, agriculture, construction, and energy. Worthington Steel, Inc. was incorporated in 2023 and is based in Columbus, Ohio.

About Nippon Steel

Nippon Steel Corporation engages in steelmaking and steel fabrication, engineering and construction, chemicals and materials, and system solutions businesses in Japan and internationally. The company offers steel plates, sheets, and slags; bar and rod materials; structural steel; pipes and tubes; titanium and stainless products; and railway, automotive, and machinery parts for applications in automotive, energy, infrastructure, and consumer electronics markets. It is also involved in construction; waste processing and recycling; supplying electricity, gas, and heat; and the provision of coal-based chemical products, petrochemicals, electronic materials, materials and components for semiconductors and electronic parts, carbon fiber, and composite products. In addition, the company offers computer systems engineering and consulting, IT-enabled outsourcing, and other services. The company was formerly known as Nippon Steel & Sumitomo Metal Corporation and changed its name to Nippon Steel Corporation in April 2019. The company was incorporated in 1950 and is headquartered in Tokyo, Japan.