Contrasting NIPPON STL & SU/S (OTCMKTS:NSSMY) and Worthington Steel (NYSE:WS)

NIPPON STL & SU/S (OTCMKTS:NSSMY) and Worthington Steel (NYSE:WS) are both basic materials companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, valuation, earnings, analyst recommendations and risk.

Dividends

NIPPON STL & SU/S pays an annual dividend of $0.35 per share and has a dividend yield of 2.0%. Worthington Steel pays an annual dividend of $0.64 per share and has a dividend yield of 2.1%. NIPPON STL & SU/S pays out 12.6% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares NIPPON STL & SU/S and Worthington Steel’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NIPPON STL & SU/S	$51.19 billion	0.33	$1.76 billion	$2.77	6.40
Worthington Steel	N/A	N/A	N/A	N/A	N/A

NIPPON STL & SU/S has higher revenue and earnings than Worthington Steel.

Profitability

This table compares NIPPON STL & SU/S and Worthington Steel’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NIPPON STL & SU/S	4.50%	8.09%	3.70%
Worthington Steel	N/A	N/A	N/A

Institutional and Insider Ownership

0.0% of NIPPON STL & SU/S shares are owned by institutional investors. Comparatively, 45.4% of Worthington Steel shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for NIPPON STL & SU/S and Worthington Steel, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NIPPON STL & SU/S	0	0	0	0	N/A
Worthington Steel	0	1	1	0	2.50

Worthington Steel has a consensus target price of $40.00, indicating a potential upside of 28.16%. Given Worthington Steel’s higher possible upside, analysts clearly believe Worthington Steel is more favorable than NIPPON STL & SU/S.

Summary

Worthington Steel beats NIPPON STL & SU/S on 5 of the 9 factors compared between the two stocks.

About NIPPON STL & SU/S

Nippon Steel & Sumitomo Metal Corporation engages in steelmaking and steel fabrication businesses worldwide. It operates in five segments: Steelmaking and Steel Fabrication, Engineering and Construction, Chemicals, New materials, and System Solutions. The company offers steel plates; hot- and cold-rolled steel sheets and coils, coated steel sheets, color coated steel sheets, electrolytic tin plates, and electrical steel sheets; bar and rod materials; and structural steel products. It also provides pipes and tubes; and railway, automotive, and construction and industrial machinery parts, such as railway wheels, driving mechanisms, axles, couplers, bogie trucks, brake disks, control bogies, brake calipers, test equipment, crankshafts and front axles, aluminum wheels, permanent magnet retarders, die materials, mill rolls, circular forgings, forged products for power generation, and shape-memory alloys. In addition, the company offers titanium products for use in automobiles, architecture, civil engineering and ocean development, aircraft, sports gears and consumer products, welded tubes, PHE, and chemical and electrolytic fields; stainless steel sheets, shapes, plates, and wire rods, as well as strips, clad steel sheets, nickel and nickel alloy products, and crystal series products; and steel slags. Further, it manufactures and markets industrial machinery and equipment; performs construction work under contract; and engages in waste processing and recycling activities, as well as in supplying electricity, gas, and heat. Additionally, the company offers coal-based chemical products and petrochemicals, as well as electronic materials; and materials for semiconductors and electronic parts, carbon fiber and composite products, and products that apply technologies for metal processing. It also provides computer systems engineering and consulting services; and IT-enabled outsourcing and other services. The company was founded in 1949 and is headquartered in Tokyo, Japan.

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.