Comparing Insteel Industries (IIIN) & SSAB (SSAAY)

Insteel Industries (NASDAQ: IIIN) and SSAB (OTCMKTS:SSAAY) are both industrial products companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, risk, dividends and institutional ownership.

Insider and Institutional Ownership

83.2% of Insteel Industries shares are owned by institutional investors. 5.7% of Insteel Industries shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Insteel Industries and SSAB’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Insteel Industries 6.18% 9.36% 7.21%
SSAB 3.60% 4.58% 2.75%

Volatility and Risk

Insteel Industries has a beta of 2.01, suggesting that its share price is 101% more volatile than the S&P 500. Comparatively, SSAB has a beta of 1.66, suggesting that its share price is 66% more volatile than the S&P 500.

Dividends

Insteel Industries pays an annual dividend of $0.12 per share and has a dividend yield of 0.4%. SSAB pays an annual dividend of $0.04 per share and has a dividend yield of 1.5%. SSAB pays out 30.8% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Insteel Industries and SSAB, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Insteel Industries 0 1 1 0 2.50
SSAB 0 0 0 0 N/A

Insteel Industries presently has a consensus price target of $34.00, suggesting a potential upside of 6.58%. Given Insteel Industries’ higher possible upside, research analysts clearly believe Insteel Industries is more favorable than SSAB.

Valuation and Earnings

This table compares Insteel Industries and SSAB’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Insteel Industries $388.87 million 1.56 $22.54 million N/A N/A
SSAB $7.74 billion 0.72 $269.20 million $0.13 20.77

SSAB has higher revenue and earnings than Insteel Industries.

Summary

Insteel Industries beats SSAB on 11 of the 14 factors compared between the two stocks.

Insteel Industries Company Profile

Insteel Industries, Inc., together with its subsidiaries, manufactures and markets steel wire reinforcing products for concrete construction applications. The company markets prestressed concrete strand (PC strand) and welded wire reinforcement (WWR). Its PC strand is a seven-wire strand that is used to impart compression forces into precast concrete elements and structures providing reinforcement for bridges, parking decks, buildings, and other concrete structures. The company's WWR engineered reinforcing product is used in nonresidential and residential construction. It produces a range of WWR products, including engineered structural mesh (ESM), concrete pipe reinforcement (CPR), and standard welded wire reinforcement (SWWR). ESM is an engineered made-to-order product that is used as the primary reinforcement for concrete elements or structures serving as a reinforcing solution for hot-rolled rebar; CPR is an engineered made-to-order product that is used as the primary reinforcement in concrete pipe, box culverts, and precast manholes for drainage and sewage systems, water treatment facilities, and other related applications; and SWWR is a secondary reinforcing product for crack control applications in residential and light nonresidential construction, including driveways, sidewalks, and various slab-on-grade applications. The company sells its products through sales representatives to the manufacturers of concrete products, distributors, rebar fabricators, and contractors primarily in the United States, as well as in Canada, Mexico, and Central and South America. Insteel Industries, Inc. was founded in 1953 and is headquartered in Mount Airy, North Carolina.

SSAB Company Profile

SSAB AB (publ) produces and sells steel products in Sweden. It operates in five segments: SSAB Special Steels, SSAB Europe, SSAB Americas, Tibnor, and Ruukki Construction. The company offers wear steels for payload and service life; structural steel; prehardened tool steel; and protection plates, as well as quenched and tempered steels, and hot-rolled advanced high-strength steel products. It also provides hot-rolled plates, hot-rolled strips, cold-rolled strips, metal-coated strips, color-coated strips, tubes and sections, and infrastructure products. In addition, the company offers heavy plate products, including plate coils, heat treated plates, and normalized plates; and other products, such as hot-rolled coils, cold-rolled coils, metal-coated products, and pre-painted products. Further, it provides engineering steel and long products comprising beams, merchant bars, hollow sections, and rebars; stainless steel and non-ferrous metals primarily comprising aluminum and copper; steel roofs, rainwater systems, and accessories for residential construction; and components that include sandwich panels, load-bearing sheets, and façade claddings for non-residential construction. Additionally, the company offers frame solutions used in non-residential buildings; and delivery package optimization, and design and installation services, as well as spare parts, and aftermarket and value added services. It also exports its products primarily in Europe. The company markets its steel products under the Hardox, Strenx, Raex, Toolox, Armox, Ramor, Docol, GreenCoat, SSAB Boron, SSAB Domex, SSAB Form, SSAB Laser, and SSAB Weathering brands. It provides its products for customers in the heavy transport, automotive, material handling, construction machinery, energy, and construction industries, as well as applications for protection steel and tool steel products, and steel service centers and distributors. SSAB AB (publ) was founded in 1978 and is headquartered in Stockholm, Sweden.

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