National Steel (NYSE:SID – Get Free Report) and Acerinox (OTCMKTS:ANIOY – Get Free Report) are both basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, risk, institutional ownership, valuation, dividends and earnings.
Risk & Volatility
National Steel has a beta of 1.64, meaning that its share price is 64% more volatile than the S&P 500. Comparatively, Acerinox has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent recommendations for National Steel and Acerinox, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| National Steel | 1 | 0 | 0 | 0 | 1.00 |
| Acerinox | 0 | 1 | 3 | 0 | 2.75 |
Profitability
This table compares National Steel and Acerinox’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| National Steel | -5.06% | -13.90% | -2.21% |
| Acerinox | 1.59% | 3.54% | 1.41% |
Dividends
National Steel pays an annual dividend of $0.10 per share and has a dividend yield of 7.8%. Acerinox pays an annual dividend of $0.22 per share and has a dividend yield of 3.7%. National Steel pays out -34.5% of its earnings in the form of a dividend. Acerinox pays out 115.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. National Steel is clearly the better dividend stock, given its higher yield and lower payout ratio.
Valuation & Earnings
This table compares National Steel and Acerinox”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| National Steel | $8.10 billion | 0.21 | -$480.53 million | ($0.29) | -4.45 |
| Acerinox | $5.86 billion | 0.50 | $243.41 million | $0.19 | 30.89 |
Acerinox has lower revenue, but higher earnings than National Steel. National Steel is trading at a lower price-to-earnings ratio than Acerinox, indicating that it is currently the more affordable of the two stocks.
Summary
Acerinox beats National Steel on 9 of the 14 factors compared between the two stocks.
About National Steel
Companhia Siderúrgica Nacional operates as an integrated steel producer in Brazil and Latin America. It operates through five segments: Steel Industry, Mining, Logistics, Energy, and Cement. The company offers flat steel products, such as hot and cold rolled, galvanized, galvalume, pre-painted, and metal sheets products; coil, sheets, and derivatives; tiles and derivatives, pipes, and profiles; long steel products; steel packaging solutions for the food industry; chemical packaging solution; and carbochemical products. It also provides steel cutting services; produces and sells cement; operates railway and port facilities; and generates electric power from its thermoelectric co-generation and hydroelectric power plants. In addition, the company explores for iron ore reserves at Casa de Pedra and Engenho mines located in the city of Congonhas; and limestone and dolomite at the Bocaina mine located in the city of Arcos in the state of Minas Gerais, Brazil, as well as produces tin. Companhia Siderúrgica Nacional was founded in 1941 and is headquartered in São Paulo, Brazil.
About Acerinox
Acerinox, S.A., together with its subsidiaries, manufactures, process, and markets stainless steel products in Spain, the United States, Africa, Asia, Rest of Europe, and internationally. It operates through Stainless steel, and High-performance Alloys segments. The company offers flat products, including hot and cold rolled coils and sheets, strips, flat bars, and discs, as well as engraved coil and sheet, black coil, slabs, circles, billets, and plates. It provides long products, which include wire and hexagonal wire rods, peeled bars, hot and cold reinforcement bars, black bars, profiles, angles, and steel profiles, as well as stainless steel, color coated, and reinforcement wires. In additions, it offers stainless steel products, such as austenitic, ferritic, duplex, and martensitic. Acerinox, S.A. was incorporated in 1970 and is headquartered in Madrid, Spain.
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