ThyssenKrupp (OTCMKTS:TKAMY) & Nippon Steel & Sumitomo Metal (OTCMKTS:NPSCY) Head-To-Head Survey

ThyssenKrupp (OTCMKTS:TKAMY) and Nippon Steel & Sumitomo Metal (OTCMKTS:NPSCY) are both basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, institutional ownership, earnings and profitability.

Dividends

ThyssenKrupp pays an annual dividend of $0.10 per share and has a dividend yield of 1.0%. Nippon Steel & Sumitomo Metal pays an annual dividend of $0.25 per share and has a dividend yield of 3.7%. ThyssenKrupp pays out -5.6% of its earnings in the form of a dividend. Nippon Steel & Sumitomo Metal pays out -833.3% 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. Nippon Steel & Sumitomo Metal is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility and Risk

ThyssenKrupp has a beta of 1.26, indicating that its stock price is 26% more volatile than the S&P 500. Comparatively, Nippon Steel & Sumitomo Metal has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for ThyssenKrupp and Nippon Steel & Sumitomo Metal, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ThyssenKrupp	2	0	0	2	2.50
Nippon Steel & Sumitomo Metal	0	0	0	0	0.00

Profitability

This table compares ThyssenKrupp and Nippon Steel & Sumitomo Metal’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ThyssenKrupp	-2.40%	-7.90%	-2.81%
Nippon Steel & Sumitomo Metal	-0.42%	-0.61%	-0.30%

Earnings and Valuation

This table compares ThyssenKrupp and Nippon Steel & Sumitomo Metal”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ThyssenKrupp	$38.01 billion	0.17	-$1.63 billion	($1.80)	-5.75
Nippon Steel & Sumitomo Metal	$57.10 billion	0.38	$2.31 billion	($0.03)	-226.00

Nippon Steel & Sumitomo Metal has higher revenue and earnings than ThyssenKrupp. Nippon Steel & Sumitomo Metal is trading at a lower price-to-earnings ratio than ThyssenKrupp, indicating that it is currently the more affordable of the two stocks.

Summary

Nippon Steel & Sumitomo Metal beats ThyssenKrupp on 9 of the 13 factors compared between the two stocks.

About ThyssenKrupp

thyssenkrupp AG operates as an industrial and technology company in Germany and internationally. It operates through five segments: Automotive Technology, Decarbon Technologies, Materials Services, Steel Europe, and Marine Systems. The Automotive Technology segment offers components, systems, and automation solutions for vehicle manufacturing, such as axle assembly, body in white, camshafts and electric engine components, dampers, dies, springs and stabilizers, crankshafts and conrods, steering, and undercarriages. The Decarbon Technologies segment provides slewing bearings and rings, green ammonia and methanol, chemical and cement plants, high pressure processing, and refinery services, as well as green hydrogen. The Marine System segment manufactures submarines, naval services, and naval surface vessels. The Material Services segment offers 3D-printing/additive manufacturing, alloys, infrastructure project and services, industrial minerals, logistics services, metals, nonferrous metals, plastics, rolled steel, special ores, and stainless steel. The Steel Europe segment manufactures composite materials, electrical steel, hot strips, organic coated strips and sheet, packaging steel, precision steel strip, and sheet and coated products. thyssenkrupp AG was founded in 1811 and is headquartered in Essen, Germany.

About Nippon Steel & Sumitomo Metal

Nippon Steel Corporation engages in steelmaking and steel fabrication, engineering and construction, chemicals and materials, and system solutions businesses in Japan and internationally. The company offers steel plates, sheets, and slags; bar and rod materials; structural steel; pipes and tubes; titanium and stainless products; and railway, automotive, and machinery parts for applications in automotive, energy, infrastructure, and consumer electronics markets. It is also involved in construction; waste processing and recycling; supplying electricity, gas, and heat; and the provision of coal-based chemical products, petrochemicals, electronic materials, materials and components for semiconductors and electronic parts, carbon fiber, and composite products. In addition, the company offers computer systems engineering and consulting, IT-enabled outsourcing, and other services. The company was formerly known as Nippon Steel & Sumitomo Metal Corporation and changed its name to Nippon Steel Corporation in April 2019. The company was incorporated in 1950 and is headquartered in Tokyo, Japan.