TimkenSteel (TMST) versus The Competition Financial Review

TimkenSteel (NYSE: TMST) is one of 22 public companies in the “Blast furnaces & steel mills” industry, but how does it compare to its competitors? We will compare TimkenSteel to similar businesses based on the strength of its dividends, valuation, profitability, institutional ownership, earnings, analyst recommendations and risk.

Risk and Volatility

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TimkenSteel has a beta of 2.04, meaning that its share price is 104% more volatile than the S&P 500. Comparatively, TimkenSteel’s competitors have a beta of 1.38, meaning that their average share price is 38% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for TimkenSteel and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TimkenSteel 0 2 2 0 2.50
TimkenSteel Competitors 308 910 1080 55 2.37

TimkenSteel currently has a consensus target price of $19.25, indicating a potential upside of 14.86%. As a group, “Blast furnaces & steel mills” companies have a potential upside of 8.34%. Given TimkenSteel’s stronger consensus rating and higher probable upside, equities analysts clearly believe TimkenSteel is more favorable than its competitors.

Institutional and Insider Ownership

75.0% of TimkenSteel shares are owned by institutional investors. Comparatively, 54.5% of shares of all “Blast furnaces & steel mills” companies are owned by institutional investors. 8.2% of TimkenSteel shares are owned by company insiders. Comparatively, 9.5% of shares of all “Blast furnaces & steel mills” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares TimkenSteel and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
TimkenSteel $1.33 billion -$43.80 million -16.76
TimkenSteel Competitors $12.38 billion $652.37 million 16.16

TimkenSteel’s competitors have higher revenue and earnings than TimkenSteel. TimkenSteel is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares TimkenSteel and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TimkenSteel -3.33% -7.56% -3.86%
TimkenSteel Competitors 4.25% 10.77% 3.43%

Summary

TimkenSteel competitors beat TimkenSteel on 8 of the 13 factors compared.

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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