APERAM/SH N Y REGISTRY SH (OTCMKTS: APEMY) and Timkensteel (NYSE:TMST) are both basic materials companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, dividends, earnings, valuation, risk, analyst recommendations and institutional ownership.

Dividends

APERAM/SH N Y REGISTRY SH pays an annual dividend of $1.40 per share and has a dividend yield of 3.2%. Timkensteel does not pay a dividend. APERAM/SH N Y REGISTRY SH pays out 32.6% of its earnings in the form of a dividend.

Risk and Volatility

APERAM/SH N Y REGISTRY SH has a beta of 2.21, meaning that its share price is 121% more volatile than the S&P 500. Comparatively, Timkensteel has a beta of 2.04, meaning that its share price is 104% more volatile than the S&P 500.

Profitability

This table compares APERAM/SH N Y REGISTRY SH and Timkensteel’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
APERAM/SH N Y REGISTRY SH 7.07% 12.21% 7.11%
Timkensteel -2.92% -7.08% -3.50%

Analyst Recommendations

This is a breakdown of current ratings and target prices for APERAM/SH N Y REGISTRY SH and Timkensteel, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
APERAM/SH N Y REGISTRY SH 0 0 0 0 N/A
Timkensteel 0 2 2 0 2.50

Timkensteel has a consensus price target of $19.50, indicating a potential upside of 10.11%. Given Timkensteel’s higher possible upside, analysts clearly believe Timkensteel is more favorable than APERAM/SH N Y REGISTRY SH.

Valuation and Earnings

This table compares APERAM/SH N Y REGISTRY SH and Timkensteel’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
APERAM/SH N Y REGISTRY SH $5.05 billion 0.74 $361.00 million $4.29 10.16
Timkensteel $1.33 billion 0.59 -$43.80 million ($1.00) -17.71

APERAM/SH N Y REGISTRY SH has higher revenue and earnings than Timkensteel. Timkensteel is trading at a lower price-to-earnings ratio than APERAM/SH N Y REGISTRY SH, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

0.0% of APERAM/SH N Y REGISTRY SH shares are owned by institutional investors. Comparatively, 75.8% of Timkensteel shares are owned by institutional investors. 8.2% of Timkensteel shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

APERAM/SH N Y REGISTRY SH beats Timkensteel on 9 of the 14 factors compared between the two stocks.

APERAM/SH N Y REGISTRY SH Company Profile

Aperam S.A., together with its subsidiaries, produces and sells stainless and specialty steel products worldwide. The company operates through three segments: Stainless & Electrical Steel; Services & Solutions; and Alloys & Specialties. It offers stainless steel and electrical steel products, including grain oriented, non-grain oriented, and non-grain oriented semi-processed steel products. The company is also involved in the distribution operations; and the provision of value added and customized steel solutions. In addition, it designs, produces, and transforms nickel alloys and other specific stainless steels in various forms, such as bars, semis, cold-rolled strips, wire and wire rods, and plates. The company serves customers in aerospace, automotive, catering, construction, household appliances and electrical engineering, industrial processes, medical, and oil and gas industries. It distributes its products through a network of service centers, transformation facilities, and sales offices. Aperam S.A. was incorporated in 2010 and is headquartered in Luxembourg City, Luxembourg.

Timkensteel Company Profile

TimkenSteel Corporation manufactures and sells alloy steel, and carbon and micro-alloy steel products worldwide. It offers carbon, micro-alloy, and alloy steel ingots, bars, tubes, and billets; and precision components, as well as thermal treatment and machining services. The company's products are used in oil country drill pipes; bits and collars; gears; hubs; axles; crankshafts and connecting rods; bearing races and rolling elements; bushings; fuel injectors; wind energy shafts; anti-friction bearings; and other applications. It sells its products and services to the oil and gas, oil country tubular goods, automotive, industrial equipment, mining, construction, rail, aerospace and defense, heavy truck, agriculture, and power generation sectors. TimkenSteel Corporation is headquartered in Canton, Ohio.

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