Head to Head Contrast: United States Steel (NYSE:X) versus Vallourec (OTCMKTS:VLOUF)

United States Steel (NYSE:XGet Free Report) and Vallourec (OTCMKTS:VLOUFGet Free Report) are both basic materials companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, analyst recommendations, valuation and risk.

Analyst Recommendations

This is a breakdown of current ratings and price targets for United States Steel and Vallourec, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
United States Steel 1 8 0 0 1.89
Vallourec 0 0 0 0 N/A

United States Steel currently has a consensus price target of $34.89, suggesting a potential downside of 14.45%. Given United States Steel’s higher possible upside, research analysts plainly believe United States Steel is more favorable than Vallourec.

Dividends

United States Steel pays an annual dividend of $0.20 per share and has a dividend yield of 0.5%. Vallourec pays an annual dividend of $0.81 per share and has a dividend yield of 4.3%. United States Steel pays out 5.7% of its earnings in the form of a dividend. Vallourec pays out 40.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Insider and Institutional Ownership

81.9% of United States Steel shares are held by institutional investors. Comparatively, 29.0% of Vallourec shares are held by institutional investors. 1.0% of United States Steel shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares United States Steel and Vallourec’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
United States Steel $18.05 billion 0.51 $895.00 million $3.51 11.62
Vallourec N/A N/A N/A $2.00 9.34

United States Steel has higher revenue and earnings than Vallourec. Vallourec is trading at a lower price-to-earnings ratio than United States Steel, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares United States Steel and Vallourec’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
United States Steel 4.96% 10.80% 5.82%
Vallourec N/A N/A N/A

Summary

United States Steel beats Vallourec on 10 of the 11 factors compared between the two stocks.

About United States Steel

(Get Free Report)

United States Steel Corporation produces and sells flat-rolled and tubular steel products primarily in North America and Europe. The company operates through North American Flat-Rolled (Flat-Rolled), Mini Mill, U. S. Steel Europe (USSE), and Tubular Products (Tubular) segments. The Flat-Rolled segment offers slabs, strip mill plates, sheets, and tin mill products, as well as iron ore and coke. This segment serves customers in the service center, conversion, transportation, automotive, construction, container, appliance, and electrical markets. The Mini Mill segment provides hot-rolled, cold-rolled, and coated sheets and electrical steel products. This segment serves customers in the automotive, construction, pipe and tube, sheet converter, electrical, solar industrial equipment, and service center markets. The USSE segment provides slabs, strip mill plates, sheets, tin mill products, and spiral welded pipes. This segment serves customers in the construction, container, appliance and electrical, service center, conversion, oil, gas, and petrochemical markets. The Tubular segment offers seamless and electric resistance welded steel casing and tubing products, as well as standard and line pipe and mechanical tubing products primarily to customers in the oil, gas, and petrochemical markets. It also engages in the real estate business. United States Steel Corporation was founded in 1901 and is headquartered in Pittsburgh, Pennsylvania.

About Vallourec

(Get Free Report)

Vallourec S.A., through its subsidiaries, provides tubular solutions for the oil and gas, industry, and energy markets in Europe, North America, South America, Asia, the Middle East, and internationally. It operates through Tubes, Mine & Forests, and Holding Companies & Other segments. The company offers seamless tubes for refineries, petrochemical facilities, and floating liquefied natural gas plants, as well as production, storage, and offloading units; casings; tubings; VAM connections; rigid subsea line pipes, onshore rigid line pipes, and specialized tubes for transportation of oil and gas; and carbon steel and steel alloy tubes, hollow bars, and connections for the processing of industrial fluids, and oil and gas. Its oil and gas market services include assistance in lowering tubes, inspecting connections, and supervising assembly; repair services for its products and thread tubes inventory management; tube inspection, maintenance, and repair services; on-site services; preparation for drilling operations; well coordination and supply services based on the drilling programs; integrated solutions for the subsea line pipe market comprising welding, coating, insulation, logistics, and service agreements; and tube coating and welding services. The company's power generation market products and services comprise seamless tubes for steam generators. Its industrial market products and services include tubes and hollow bars, as well as circular, square, rectangular, and octagonal sections; tubular solutions for infrastructure construction; tubes and rings to manufacture cranes, construction machinery, agricultural machinery, and hydraulic cylinders; and tubes and axles for automotive manufacturers. The company is also involved in the iron ore production business. Vallourec S.A. was founded in 1899 and is based in Meudon, France.

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