Financial Comparison: AK Steel (AKS) versus Its Competitors

AK Steel (NYSE: AKS) is one of 22 publicly-traded companies in the “Blast furnaces & steel mills” industry, but how does it compare to its peers? We will compare AK Steel to related businesses based on the strength of its dividends, valuation, risk, analyst recommendations, institutional ownership, earnings and profitability.

Valuation & Earnings

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This table compares AK Steel and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
AK Steel $6.08 billion $6.19 million 15.10
AK Steel Competitors $12.38 billion $665.62 million 16.15

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

Profitability

This table compares AK Steel and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AK Steel 0.16% 71.24% 2.64%
AK Steel Competitors 4.34% 10.81% 3.48%

Risk and Volatility

AK Steel has a beta of 2.89, meaning that its stock price is 189% more volatile than the S&P 500. Comparatively, AK Steel’s peers have a beta of 1.39, meaning that their average stock price is 39% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for AK Steel and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AK Steel 2 9 5 0 2.19
AK Steel Competitors 309 910 1081 55 2.37

AK Steel presently has a consensus price target of $6.35, indicating a potential upside of 35.68%. As a group, “Blast furnaces & steel mills” companies have a potential upside of 9.42%. Given AK Steel’s higher probable upside, analysts plainly believe AK Steel is more favorable than its peers.

Institutional & Insider Ownership

67.8% of AK Steel shares are held by institutional investors. Comparatively, 65.2% of shares of all “Blast furnaces & steel mills” companies are held by institutional investors. 1.1% of AK Steel shares are held by company insiders. Comparatively, 3.9% of shares of all “Blast furnaces & steel mills” companies are held 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.

Summary

AK Steel peers beat AK Steel on 9 of the 13 factors compared.

AK Steel Company Profile

AK Steel Holding Corporation, through its subsidiary, AK Steel Corporation, produces flat-rolled carbon, stainless, and electrical steels, and tubular products in the United States and internationally. It produces flat-rolled carbon steel products, including coated, cold-rolled, and hot-rolled carbon steel products; grain-oriented specialty stainless and electrical steels; and carbon and stainless steel tubing products. The company also buys and sells steel and steel products, as well as other materials; and produces metallurgical coal from reserves in Somerset County, Pennsylvania. It sells its flat-rolled carbon steel products primarily to automotive manufacturers; customers in the infrastructure and manufacturing markets, including the manufacturers of power transmission and distribution transformers, who produce equipment for the electrical grid, as well as electrical motors and generators; and manufacturers of heating, ventilation and air conditioning equipment, and appliances. The company also sells its carbon steel products to distributors, service centers, and converters. AK Steel Holding Corporation was founded in 1993 and is headquartered in West Chester, Ohio.

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