National Steel (NYSE:SID) versus Salzgitter (OTCMKTS:SZGPY) Head-To-Head Contrast

Salzgitter (OTCMKTS:SZGPY) and National Steel (NYSE:SID) are both mid-cap basic materials companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, dividends, risk, valuation, earnings and institutional ownership.

Earnings & Valuation

This table compares Salzgitter and National Steel”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Salzgitter	$10.83 billion	0.23	-$381.12 million	($0.40)	-11.60
National Steel	$8.10 billion	0.27	-$480.53 million	($0.17)	-9.62

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Salzgitter and National Steel, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Salzgitter	2	3	3	1	2.33
National Steel	2	1	0	0	1.33

National Steel has a consensus price target of $1.40, indicating a potential downside of 14.37%. Given National Steel’s higher probable upside, analysts clearly believe National Steel is more favorable than Salzgitter.

Profitability

This table compares Salzgitter and National Steel’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Salzgitter	-2.09%	-4.31%	-1.83%
National Steel	-2.88%	-7.77%	-1.26%

Risk and Volatility

Salzgitter has a beta of 1.47, indicating that its share price is 47% more volatile than the S&P 500. Comparatively, National Steel has a beta of 1.74, indicating that its share price is 74% more volatile than the S&P 500.

Summary

Salzgitter beats National Steel on 7 of the 13 factors compared between the two stocks.

About Salzgitter

Salzgitter AG, together with its subsidiaries, engages in steel and technology businesses worldwide. It operates through four segments: Steel Production, Steel Processing, Trading, and Technology. The Steel Production segment manufactures steel and special steels, such as hot-rolled wide strip, steel sheet, sections, tailored blanks, as well as scrap trading. The Steel Processing segment produces various high-grade heavy plates; and manufactures line pipes, HFI-welded tubes, and precision and stainless-steel tubes. The Trading segment operates a European sales network, as well as trading companies and agencies worldwide. The Technology segment engages in the provision of machinery and plants for the filling and packaging of beverages, as well as special machinery engineering for shoe manufacturing and elastomer production. The company also provides IT, facility management, logistics, automotive engineering, and research and development services, as well as supplies raw materials. The company was founded in 1858 and is headquartered in Salzgitter, Germany.

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.