Nucor Corporation (NYSE:NUE) and Its Competitors Head to Head Contrast

Nucor Corporation (NYSE: NUE) is one of 26 publicly-traded companies in the “Steel” industry, but how does it compare to its competitors? We will compare Nucor Corporation to related companies based on the strength of its analyst recommendations, dividends, profitability, institutional ownership, valuation, risk and earnings.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nucor Corporation 0 6 9 0 2.60
Nucor Corporation Competitors 291 845 968 30 2.35

Nucor Corporation currently has a consensus target price of $67.44, indicating a potential upside of 20.79%. As a group, “Steel” companies have a potential upside of 10.25%. Given Nucor Corporation’s stronger consensus rating and higher possible upside, research analysts plainly believe Nucor Corporation is more favorable than its competitors.

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 5.80% 12.78% 6.87%
Nucor Corporation Competitors -1,029.83% 2.26% 2.19%

Dividends

Nucor Corporation pays an annual dividend of $1.51 per share and has a dividend yield of 2.7%. Nucor Corporation pays out 43.9% of its earnings in the form of a dividend. As a group, “Steel” companies pay a dividend yield of 2.0% and pay out 58.6% 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.

Volatility & Risk

Nucor Corporation has a beta of 1.59, indicating that its stock price is 59% more volatile than the S&P 500. Comparatively, Nucor Corporation’s competitors have a beta of 1.42, indicating that their average stock price is 42% more volatile than the S&P 500.

Institutional & Insider Ownership

74.8% of Nucor Corporation shares are held by institutional investors. Comparatively, 52.2% of shares of all “Steel” companies are held by institutional investors. 0.7% of Nucor Corporation shares are held by insiders. Comparatively, 12.1% of shares of all “Steel” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Nucor Corporation and its competitors revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Nucor Corporation $16.21 billion $796.27 million 16.23
Nucor Corporation Competitors $8.51 billion $152.20 million -86.02

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

Summary

Nucor Corporation beats its competitors on 13 of the 15 factors compared.

Nucor Corporation Company Profile

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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