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

Profitability

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

Net Margins Return on Equity Return on Assets
ArcelorMittal 5.50% 10.52% 4.58%
National Steel N/A N/A N/A

Volatility & Risk

ArcelorMittal has a beta of 2.1, suggesting that its share price is 110% more volatile than the S&P 500. Comparatively, National Steel has a beta of 2.28, suggesting that its share price is 128% more volatile than the S&P 500.

Earnings & Valuation

This table compares ArcelorMittal and National Steel’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
ArcelorMittal $61.98 billion 0.42 $7.47 billion $3.33 7.74
National Steel $5.14 billion 0.78 $919.47 million $0.25 11.84

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

Institutional & Insider Ownership

3.6% of ArcelorMittal shares are owned by institutional investors. Comparatively, 3.2% of National Steel shares are owned by institutional investors. 0.1% of ArcelorMittal shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations for ArcelorMittal and National Steel, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ArcelorMittal 1 2 10 0 2.69
National Steel 0 1 0 0 2.00

ArcelorMittal currently has a consensus price target of $31.07, indicating a potential upside of 20.61%. Given ArcelorMittal’s stronger consensus rating and higher possible upside, research analysts plainly believe ArcelorMittal is more favorable than National Steel.

Summary

ArcelorMittal beats National Steel on 11 of the 14 factors compared between the two stocks.

About ArcelorMittal

ArcelorMittal S.A. (ArcelorMittal) is a holding company. The Company, together with its subsidiaries, owns and operates steel manufacturing and mining facilities in Europe, North and South America, Asia and Africa. ArcelorMittal operates through five segments, which include NAFTA; Europe; Brazil; Africa and Commonwealth of Independent States (ACIS), and Mining. The NAFTA segment produces flat, long and tubular products. The Brazil segment includes the flat operations of Brazil, and the long and tubular operations of Brazil and neighboring countries. The Europe segment is the flat steel producer in Europe. The ACIS segment produces a combination of flat, long products and tubular products. The Mining segment comprises all mines owned by ArcelorMittal in the Americas, Asia, Europe and Africa. It produces a range of finished and semi-finished steel products (semis).

About National Steel

Companhia Siderurgica Nacional is a Brazil-based company engaged in the steel industry. The Company operates throughout the entire steel production chain, from the mining of iron ore to the production and sale of a range of steel products, including coated galvanized flat steel and tinplate. The Company operates in five segments: Steel, Mining, Cement, Logistics and Energy. The Steel segment focuses on the production, distribution and sale of flat steel, long steel, metallic containers and galvanized steel, with operations in Brazil, the United States, Portugal and Germany. The Mining segment encompasses the activities of iron ore and tin mining. The Cement segment is responsible for the cement production, distribution and sale operations. The Logistics segment manages port terminal for containers, as well as railway networks. The Energy segment includes generation of electric power. The Company is controlled by Vicunha Acos SA.

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