Reviewing Worthington Steel (NYSE:WS) and Anglo American (OTCMKTS:NGLOY)

Anglo American (OTCMKTS:NGLOY) and Worthington Steel (NYSE:WS) are both materials companies, but which is the better stock? We will compare the two companies based on the strength of their risk, dividends, institutional ownership, earnings, analyst recommendations, profitability and valuation.

Institutional and Insider Ownership

0.0% of Anglo American shares are owned by institutional investors. Comparatively, 45.4% of Worthington Steel shares are owned by institutional investors. 2.6% of Worthington Steel shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings for Anglo American and Worthington Steel, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Anglo American	1	3	4	1	2.56
Worthington Steel	0	1	1	1	3.00

Anglo American currently has a consensus price target of $28.00, indicating a potential upside of 6.75%. Worthington Steel has a consensus price target of $46.00, indicating a potential upside of 21.20%. Given Worthington Steel’s stronger consensus rating and higher probable upside, analysts plainly believe Worthington Steel is more favorable than Anglo American.

Risk and Volatility

Anglo American has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500. Comparatively, Worthington Steel has a beta of 2.3, suggesting that its share price is 130% more volatile than the S&P 500.

Profitability

This table compares Anglo American and Worthington Steel’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Anglo American	N/A	N/A	N/A
Worthington Steel	0.50%	8.87%	4.89%

Dividends

Anglo American pays an annual dividend of $0.13 per share and has a dividend yield of 0.5%. Worthington Steel pays an annual dividend of $0.64 per share and has a dividend yield of 1.7%. Worthington Steel pays out 46.0% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares Anglo American and Worthington Steel”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Anglo American	$18.55 billion	3.33	-$3.74 billion	N/A	N/A
Worthington Steel	$3.44 billion	0.56	$8.50 million	$1.39	27.31

Worthington Steel has lower revenue, but higher earnings than Anglo American.

Summary

Worthington Steel beats Anglo American on 10 of the 14 factors compared between the two stocks.

About Anglo American

Anglo American plc operates as a mining company in the United Kingdom and internationally. It explores for rough and polished diamonds, copper, platinum group metals and nickel, steelmaking coal, and iron ore; and nickel, polyhalite, and manganese ores. Anglo American plc was founded in 1917 and is headquartered in London, the United Kingdom.

About Worthington Steel

Worthington Steel, Inc. operates as a steel processor in North America. It offers carbon flat-rolled steel and tailor welded blanks, as well as electrical steel laminations; and aluminum tailor welded blanks. The company serves various end-markets, including automotive, heavy truck, agriculture, construction, and energy. Worthington Steel, Inc. was incorporated in 2023 and is based in Columbus, Ohio.