Comparing Nippon Steel & Sumitomo Metal (NPSCY) and Its Rivals

Dividends

Nippon Steel & Sumitomo Metal pays an annual dividend of $0.25 per share and has a dividend yield of 3.8%. Nippon Steel & Sumitomo Metal pays out 34.7% of its earnings in the form of a dividend. As a group, “STEEL – PRODUCERS” companies pay a dividend yield of 2.3% and pay out 98.3% of their earnings in the form of a dividend. Nippon Steel & Sumitomo Metal is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

54.8% of shares of all “STEEL – PRODUCERS” companies are held by institutional investors. 5.5% of shares of all “STEEL – PRODUCERS” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Nippon Steel & Sumitomo Metal and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nippon Steel & Sumitomo Metal	3.73%	5.54%	2.92%
Nippon Steel & Sumitomo Metal Competitors	2.01%	0.96%	1.37%

Earnings & Valuation

This table compares Nippon Steel & Sumitomo Metal and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Nippon Steel & Sumitomo Metal	$57.10 billion	$2.31 billion	9.08
Nippon Steel & Sumitomo Metal Competitors	$19.89 billion	$280.11 million	21.58

Nippon Steel & Sumitomo Metal has higher revenue and earnings than its peers. Nippon Steel & Sumitomo Metal is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Volatility and Risk

Nippon Steel & Sumitomo Metal has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500. Comparatively, Nippon Steel & Sumitomo Metal’s peers have a beta of 1.26, indicating that their average stock price is 26% more volatile than the S&P 500.

Summary

Nippon Steel & Sumitomo Metal beats its peers on 7 of the 11 factors compared.

Nippon Steel & Sumitomo Metal Company Profile

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.