Comparing National Steel (SID) and Cliffs Natural Resources (CLF)
National Steel (NYSE: SID) and Cliffs Natural Resources (NYSE:CLF) are both mid-cap basic materials companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, risk, valuation and profitability.
Volatility & Risk
National Steel has a beta of 2.25, indicating that its share price is 125% more volatile than the S&P 500. Comparatively, Cliffs Natural Resources has a beta of 1.65, indicating that its share price is 65% more volatile than the S&P 500.
This table compares National Steel and Cliffs Natural Resources’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Cliffs Natural Resources||2.44%||-13.83%||7.41%|
Earnings & Valuation
This table compares National Steel and Cliffs Natural Resources’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|National Steel||$5.14 billion||0.84||$919.47 million||$0.25||12.76|
|Cliffs Natural Resources||$2.34 billion||0.96||$480.50 million||$0.22||34.41|
National Steel has higher revenue and earnings than Cliffs Natural Resources. National Steel is trading at a lower price-to-earnings ratio than Cliffs Natural Resources, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent recommendations and price targets for National Steel and Cliffs Natural Resources, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Cliffs Natural Resources||2||3||3||0||2.13|
Cliffs Natural Resources has a consensus price target of $9.00, suggesting a potential upside of 18.89%. Given Cliffs Natural Resources’ stronger consensus rating and higher probable upside, analysts plainly believe Cliffs Natural Resources is more favorable than National Steel.
Insider and Institutional Ownership
3.2% of National Steel shares are owned by institutional investors. Comparatively, 58.3% of Cliffs Natural Resources shares are owned by institutional investors. 0.5% of Cliffs Natural Resources shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Cliffs Natural Resources beats National Steel on 9 of the 14 factors compared between the two stocks.
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.
About Cliffs Natural Resources
Cleveland-Cliffs Inc, formerly Cliffs Natural Resources Inc., is a mining and natural resources company. The Company is a supplier of iron ore pellets to the North American steel industry from its mines and pellet plants located in Michigan and Minnesota. The Company’s segments include U.S. Iron Ore and Asia Pacific Iron Ore. The Company is a producer of iron ore pellets, primarily selling production from U.S. Iron Ore to integrated steel companies in the United States, Canada and Mexico. Its Asia Pacific Iron Ore operations are located in Western Australia and consist of its Koolyanobbing operation. The Koolyanobbing operations serve the Asian iron ore markets with direct-shipped fines and lump ore. In addition, the Company operates an iron ore mining complex in Western Australia. In the United States, the Company owned four operational iron ore mines and one indefinitely idled mine.
Receive News & Stock Ratings for National Steel Company Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for National Steel Company and related stocks with our FREE daily email newsletter.