Steel Dynamics (NASDAQ:STLD) & ThyssenKrupp (OTCMKTS:TYEKF) Financial Contrast

Steel Dynamics (NASDAQ:STLD) and ThyssenKrupp (OTCMKTS:TYEKF) are both basic materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, dividends, risk, profitability, earnings and institutional ownership.

Valuation & Earnings

This table compares Steel Dynamics and ThyssenKrupp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Steel Dynamics	$17.54 billion	1.11	$1.54 billion	$7.57	17.33
ThyssenKrupp	$38.01 billion	0.17	-$1.63 billion	($1.80)	-5.90

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

Risk and Volatility

Steel Dynamics has a beta of 1.38, meaning that its stock price is 38% more volatile than the S&P 500. Comparatively, ThyssenKrupp has a beta of 1.05, meaning that its stock price is 5% more volatile than the S&P 500.

Insider & Institutional Ownership

82.4% of Steel Dynamics shares are owned by institutional investors. 6.3% of Steel Dynamics shares are owned 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.

Profitability

This table compares Steel Dynamics and ThyssenKrupp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Steel Dynamics	6.80%	13.26%	7.60%
ThyssenKrupp	-2.98%	-9.52%	-3.46%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Steel Dynamics and ThyssenKrupp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Steel Dynamics	0	3	8	0	2.73
ThyssenKrupp	0	0	0	0	0.00

Steel Dynamics presently has a consensus target price of $148.00, suggesting a potential upside of 12.80%. Given Steel Dynamics’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Steel Dynamics is more favorable than ThyssenKrupp.

Summary

Steel Dynamics beats ThyssenKrupp on 13 of the 14 factors compared between the two stocks.

About Steel Dynamics

Steel Dynamics, Inc., together with its subsidiaries, operates as a steel producer and metal recycler in the United States. The Steel Operations segment offers hot rolled, cold rolled, and coated steel products; parallel flange beams and channel sections, flat bars, large unequal leg angles, and reinforcing steel bars, as well as standard strength carbon, intermediate alloy hardness, and premium grade rail products; engineered special-bar-quality products, merchant-bar-quality products, and other engineered round steel bars; channels, angles, flats, merchant rounds, and reinforcing steel bars; and specialty shapes and light structural steel products. This segment also engages in turning, polishing, straightening, chamfering, precision saw-cutting, and heat treating of bar products. Its products are used in construction, automotive, manufacturing, transportation, heavy and agriculture equipment, and pipe and tube markets. The Metals Recycling Operations segment is involved in the ferrous and nonferrous scrap metal processing, transportation, marketing, brokerage, and scrap management services. Its ferrous products include heavy melting steel, busheling, bundled scrap, shredded scrap, steel turnings, and cast-iron products; and nonferrous products comprise aluminum, brass, copper, stainless steel, and other nonferrous metals. The Steel Fabrication Operations segment produces steel non-residential building components, such as steel joists, girders, trusses, and steel deck products for non-residential steel fabricators, metal building companies, general construction contractors, developers, owners, brokers, and governmental entities, as well as e-commerce warehouses, data centers, metal buildings, and education and commercial building projects. The Aluminum Operations segment offers recycled aluminum flat rolled products. The company also exports its products. Steel Dynamics, Inc. was founded in 1993 and is headquartered in Fort Wayne, Indiana.

About ThyssenKrupp

thyssenkrupp AG operates as an industrial and technology company in Germany and internationally. It operates through five segments: Automotive Technology, Decarbon Technologies, Materials Services, Steel Europe, and Marine Systems. The Automotive Technology segment offers components, systems, and automation solutions for vehicle manufacturing, such as axle assembly, body in white, camshafts and electric engine components, dampers, dies, springs and stabilizers, crankshafts and conrods, steering, and undercarriages. The Decarbon Technologies segment provides slewing bearings and rings, green ammonia and methanol, chemical and cement plants, high pressure processing, and refinery services, as well as green hydrogen. The Marine System segment manufactures submarines, naval services, and naval surface vessels. The Material Services segment offers 3D-printing/additive manufacturing, alloys, infrastructure project and services, industrial minerals, logistics services, metals, nonferrous metals, plastics, rolled steel, special ores, and stainless steel. The Steel Europe segment manufactures composite materials, electrical steel, hot strips, organic coated strips and sheet, packaging steel, precision steel strip, and sheet and coated products. thyssenkrupp AG was founded in 1811 and is headquartered in Essen, Germany.