United States Steel Corporation (NYSE: X) and Dynamic Materials Corp. (NASDAQ:BOOM) are both basic materials companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, risk, earnings, institutional ownership, profitability, dividends and analyst recommendations.

Risk and Volatility

United States Steel Corporation has a beta of 2.89, suggesting that its share price is 189% more volatile than the S&P 500. Comparatively, Dynamic Materials Corp. has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.

Valuation & Earnings

This table compares United States Steel Corporation and Dynamic Materials Corp.’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
United States Steel Corporation $11.21 billion 0.44 $838.00 million $0.16 177.69
Dynamic Materials Corp. $162.88 million 1.63 $7.00 million ($0.57) -31.49

United States Steel Corporation has higher revenue and earnings than Dynamic Materials Corp.. Dynamic Materials Corp. is trading at a lower price-to-earnings ratio than United States Steel Corporation, indicating that it is currently the more affordable of the two stocks.

Dividends

United States Steel Corporation pays an annual dividend of $0.20 per share and has a dividend yield of 0.7%. Dynamic Materials Corp. pays an annual dividend of $0.08 per share and has a dividend yield of 0.4%. United States Steel Corporation pays out 125.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Dynamic Materials Corp. pays out -14.0% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for United States Steel Corporation and Dynamic Materials Corp., as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
United States Steel Corporation 4 5 8 0 2.24
Dynamic Materials Corp. 0 0 1 0 3.00

United States Steel Corporation currently has a consensus target price of $27.72, indicating a potential downside of 2.51%. Dynamic Materials Corp. has a consensus target price of $19.00, indicating a potential upside of 5.85%. Given Dynamic Materials Corp.’s stronger consensus rating and higher possible upside, analysts clearly believe Dynamic Materials Corp. is more favorable than United States Steel Corporation.

Profitability

This table compares United States Steel Corporation and Dynamic Materials Corp.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
United States Steel Corporation 0.24% 6.50% 1.67%
Dynamic Materials Corp. -5.01% -6.38% -4.39%

Institutional & Insider Ownership

64.0% of United States Steel Corporation shares are held by institutional investors. Comparatively, 86.0% of Dynamic Materials Corp. shares are held by institutional investors. 1.0% of United States Steel Corporation shares are held by insiders. Comparatively, 5.1% of Dynamic Materials Corp. shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

United States Steel Corporation beats Dynamic Materials Corp. on 9 of the 15 factors compared between the two stocks.

United States Steel Corporation Company Profile

United States Steel Corporation is an integrated steel producer. The Company is engaged in producing flat-rolled and tubular products with production operations in North America and Europe. The Company operates through three segments: Flat-Rolled Products (Flat-Rolled), U. S. Steel Europe (USSE) and Tubular Products (Tubular). The Flat-Rolled segment includes the operating results of its integrated steel plants and equity investees in the United States involved in the production of slabs, rounds, strip mill plates, sheets and tin mill products, as well as all iron ore and coke production facilities in the United States. The USSE segment includes the operating results of U. S. Steel Kosice (USSK) and its integrated steel plant and coke production facilities in Slovakia. The Tubular segment includes the operating results of its tubular production facilities, primarily in the United States and equity investees in the United States and Brazil.

Dynamic Materials Corp. Company Profile

DMC Global Inc., formerly Dynamic Materials Corporation, is a diversified technology company. The Company operates a family of technical product and process businesses serving the energy, industrial and infrastructure markets. The Company’s businesses operate through an international network of manufacturing, distribution and sales facilities. The Company’s segments are NobelClad and DynaEnergetics. The NobelClad segment is engaged in the production of explosion-welded clad metal plates for use in the construction of corrosion resistant industrial processing equipment and specialized transition joints. The DynaEnergetics segment manufactures, markets and sells oilfield perforating equipment and explosives, including detonating cords, detonators, bi-directional boosters and shaped charges, and seismic related explosives and accessories. It owns explosive metalworking and metallic processes, and registered trademarks, including Detaclad, Detacouple, EFTEK, ETJ 2000 and NOBELCLAD.

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