National Steel (NYSE:SID – Get Free Report) and ThyssenKrupp (OTCMKTS:TKAMY – Get Free Report) are both basic materials companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, profitability, valuation, institutional ownership and risk.
Profitability
This table compares National Steel and ThyssenKrupp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| National Steel | -5.06% | -13.90% | -2.21% |
| ThyssenKrupp | -2.40% | -7.90% | -2.80% |
Analyst Recommendations
This is a breakdown of current ratings and target prices for National Steel and ThyssenKrupp, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| National Steel | 1 | 1 | 0 | 0 | 1.50 |
| ThyssenKrupp | 1 | 1 | 0 | 1 | 2.33 |
Risk & Volatility
National Steel has a beta of 1.6, indicating that its share price is 60% more volatile than the S&P 500. Comparatively, ThyssenKrupp has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500.
Valuation and Earnings
This table compares National Steel and ThyssenKrupp”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| National Steel | $8.10 billion | 0.25 | -$480.53 million | ($0.29) | -5.19 |
| ThyssenKrupp | $38.01 billion | 0.22 | -$1.63 billion | ($1.42) | -9.66 |
National Steel has higher earnings, but lower revenue than ThyssenKrupp. ThyssenKrupp is trading at a lower price-to-earnings ratio than National Steel, indicating that it is currently the more affordable of the two stocks.
Dividends
National Steel pays an annual dividend of $0.10 per share and has a dividend yield of 6.6%. ThyssenKrupp pays an annual dividend of $0.10 per share and has a dividend yield of 0.7%. National Steel pays out -34.5% of its earnings in the form of a dividend. ThyssenKrupp pays out -7.0% 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. National Steel is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
National Steel beats ThyssenKrupp on 9 of the 14 factors compared between the two stocks.
About National Steel
Companhia Siderúrgica Nacional operates as an integrated steel producer in Brazil and Latin America. It operates through five segments: Steel Industry, Mining, Logistics, Energy, and Cement. The company offers flat steel products, such as hot and cold rolled, galvanized, galvalume, pre-painted, and metal sheets products; coil, sheets, and derivatives; tiles and derivatives, pipes, and profiles; long steel products; steel packaging solutions for the food industry; chemical packaging solution; and carbochemical products. It also provides steel cutting services; produces and sells cement; operates railway and port facilities; and generates electric power from its thermoelectric co-generation and hydroelectric power plants. In addition, the company 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. Companhia Siderúrgica Nacional was founded in 1941 and is headquartered in São Paulo, Brazil.
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.
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