Critical Survey: NIPPON STL & SU/S (OTCMKTS:NSSMY) vs. Worthington Steel (NYSE:WS)

Worthington Steel (NYSE:WS) and NIPPON STL & SU/S (OTCMKTS:NSSMY) are both basic materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, profitability, analyst recommendations, earnings, dividends and risk.

Dividends

Worthington Steel pays an annual dividend of $0.64 per share and has a dividend yield of 2.0%. NIPPON STL & SU/S pays an annual dividend of $0.35 per share and has a dividend yield of 4.8%. NIPPON STL & SU/S pays out 12.6% of its earnings in the form of a dividend.

Institutional and Insider Ownership

45.4% of Worthington Steel shares are owned by institutional investors. Comparatively, 0.0% of NIPPON STL & SU/S shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Worthington Steel and NIPPON STL & SU/S’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Worthington Steel	N/A	N/A	N/A
NIPPON STL & SU/S	4.50%	8.09%	3.70%

Analyst Recommendations

This is a summary of current ratings and price targets for Worthington Steel and NIPPON STL & SU/S, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Worthington Steel	0	1	1	0	2.50
NIPPON STL & SU/S	0	0	0	0	N/A

Worthington Steel presently has a consensus target price of $40.00, indicating a potential upside of 28.12%. Given Worthington Steel’s higher probable upside, equities research analysts plainly believe Worthington Steel is more favorable than NIPPON STL & SU/S.

Earnings and Valuation

This table compares Worthington Steel and NIPPON STL & SU/S’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Worthington Steel	N/A	N/A	N/A	N/A	N/A
NIPPON STL & SU/S	$51.19 billion	0.14	$1.76 billion	$2.77	2.66

NIPPON STL & SU/S has higher revenue and earnings than Worthington Steel.

Summary

NIPPON STL & SU/S beats Worthington Steel on 5 of the 9 factors compared between the two stocks.

About Worthington Steel

Worthington Steel, Inc. operates as a steel processor in North America. It offers carbon flat-rolled steel and tailor welded blanks, as well as electrical steel laminations; and aluminum tailor welded blanks. The company serves various end-markets, including automotive, heavy truck, agriculture, construction, and energy. Worthington Steel, Inc. was incorporated in 2023 and is based in Columbus, Ohio.

About NIPPON STL & SU/S

Nippon Steel & Sumitomo Metal Corporation engages in steelmaking and steel fabrication businesses worldwide. It operates in five segments: Steelmaking and Steel Fabrication, Engineering and Construction, Chemicals, New materials, and System Solutions. The company offers steel plates; hot- and cold-rolled steel sheets and coils, coated steel sheets, color coated steel sheets, electrolytic tin plates, and electrical steel sheets; bar and rod materials; and structural steel products. It also provides pipes and tubes; and railway, automotive, and construction and industrial machinery parts, such as railway wheels, driving mechanisms, axles, couplers, bogie trucks, brake disks, control bogies, brake calipers, test equipment, crankshafts and front axles, aluminum wheels, permanent magnet retarders, die materials, mill rolls, circular forgings, forged products for power generation, and shape-memory alloys. In addition, the company offers titanium products for use in automobiles, architecture, civil engineering and ocean development, aircraft, sports gears and consumer products, welded tubes, PHE, and chemical and electrolytic fields; stainless steel sheets, shapes, plates, and wire rods, as well as strips, clad steel sheets, nickel and nickel alloy products, and crystal series products; and steel slags. Further, it manufactures and markets industrial machinery and equipment; performs construction work under contract; and engages in waste processing and recycling activities, as well as in supplying electricity, gas, and heat. Additionally, the company offers coal-based chemical products and petrochemicals, as well as electronic materials; and materials for semiconductors and electronic parts, carbon fiber and composite products, and products that apply technologies for metal processing. It also provides computer systems engineering and consulting services; and IT-enabled outsourcing and other services. The company was founded in 1949 and is headquartered in Tokyo, Japan.