Nucor Corporation (NYSE: NUE) is one of 28 public companies in the “Steel” industry, but how does it contrast to its competitors? We will compare Nucor Corporation to similar businesses based on the strength of its profitability, institutional ownership, dividends, risk, valuation, analyst recommendations and earnings.

Institutional and Insider Ownership

74.9% of Nucor Corporation shares are owned by institutional investors. Comparatively, 58.1% of shares of all “Steel” companies are owned by institutional investors. 0.7% of Nucor Corporation shares are owned by insiders. Comparatively, 7.6% of shares of all “Steel” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

Nucor Corporation has a beta of 1.54, suggesting that its stock price is 54% more volatile than the S&P 500. Comparatively, Nucor Corporation’s competitors have a beta of 1.37, suggesting that their average stock price is 37% more volatile than the S&P 500.

Valuation & Earnings

This table compares Nucor Corporation and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Nucor Corporation $18.24 billion $2.67 billion 16.28
Nucor Corporation Competitors $7.78 billion $1.01 billion 35.33

Nucor Corporation has higher revenue and earnings than its competitors. Nucor Corporation is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of recent recommendations for Nucor Corporation and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nucor Corporation 0 6 9 0 2.60
Nucor Corporation Competitors 289 834 944 29 2.34

Nucor Corporation currently has a consensus target price of $67.24, indicating a potential upside of 19.74%. As a group, “Steel” companies have a potential upside of 3.51%. Given Nucor Corporation’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Nucor Corporation is more favorable than its competitors.

Dividends

Nucor Corporation pays an annual dividend of $1.51 per share and has a dividend yield of 2.7%. Nucor Corporation pays out 43.8% of its earnings in the form of a dividend. As a group, “Steel” companies pay a dividend yield of 2.1% and pay out 60.2% of their earnings in the form of a dividend. Nucor Corporation has raised its dividend for 43 consecutive years. Nucor Corporation is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Profitability

This table compares Nucor Corporation and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nucor Corporation 6.08% 13.39% 7.20%
Nucor Corporation Competitors -1,550.91% 3.59% 2.20%

Summary

Nucor Corporation beats its competitors on 12 of the 15 factors compared.

About Nucor Corporation

Nucor Corporation (Nucor) manufactures steel and steel products. The Company produces direct reduced iron (DRI) for use in its steel mills. It operates in three segments: steel mills, steel products and raw materials. The steel mills segment produces and distributes sheet steel (hot-rolled, cold-rolled and galvanized), plate steel, structural steel (wide-flange beams, beam blanks, H-piling and sheet piling) and bar steel (blooms, billets, concrete reinforcing bar, merchant bar, wire rod and special bar quality). The steel products segment produces steel joists and joist girders, steel deck, fabricated concrete reinforcing steel and cold finished steel. The raw materials produces DRI; brokers ferrous and nonferrous metals, pig iron, HBI and DRI; supplies ferro-alloys, and processes ferrous and nonferrous scrap metal. It also processes ferrous and nonferrous metals and brokers ferrous and nonferrous metals, pig iron, hot briquetted iron (HBI) and DRI.

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