Reviewing Steel Dynamics (NASDAQ:STLD) and Vox Royalty (NASDAQ:VOXR)

Steel Dynamics (NASDAQ:STLD) and Vox Royalty (NASDAQ:VOXR) are both materials companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, earnings, profitability, analyst recommendations, risk and institutional ownership.

Dividends

Steel Dynamics pays an annual dividend of $2.12 per share and has a dividend yield of 0.9%. Vox Royalty pays an annual dividend of $0.06 per share and has a dividend yield of 1.2%. Steel Dynamics pays out 19.2% of its earnings in the form of a dividend. Vox Royalty pays out 9.0% 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. Steel Dynamics has raised its dividend for 13 consecutive years. Vox Royalty is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Steel Dynamics and Vox Royalty’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Steel Dynamics	7.83%	18.12%	9.81%
Vox Royalty	144.32%	13.41%	12.00%

Valuation and Earnings

This table compares Steel Dynamics and Vox Royalty”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Steel Dynamics	$18.18 billion	1.88	$1.19 billion	$11.03	21.59
Vox Royalty	$33.37 million	10.68	$5.89 million	$0.67	7.66

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

Analyst Recommendations

This is a summary of recent ratings and price targets for Steel Dynamics and Vox Royalty, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Steel Dynamics	0	4	8	0	2.67
Vox Royalty	0	1	3	0	2.75

Steel Dynamics currently has a consensus price target of $258.55, indicating a potential upside of 8.56%. Vox Royalty has a consensus price target of $8.00, indicating a potential upside of 55.95%. Given Vox Royalty’s stronger consensus rating and higher possible upside, analysts clearly believe Vox Royalty is more favorable than Steel Dynamics.

Volatility and Risk

Steel Dynamics has a beta of 1.48, indicating that its share price is 48% more volatile than the S&P 500. Comparatively, Vox Royalty has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500.

Insider & Institutional Ownership

82.4% of Steel Dynamics shares are owned by institutional investors. Comparatively, 46.0% of Vox Royalty shares are owned by institutional investors. 6.6% of Steel Dynamics shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Steel Dynamics beats Vox Royalty on 10 of the 17 factors compared between the two stocks.

About Steel Dynamics

Steel Dynamics, Inc., together with its subsidiaries, operates as a steel producer and metal recycler in the United States. The Steel Operations segment offers hot rolled, cold rolled, and coated steel products; parallel flange beams and channel sections, flat bars, large unequal leg angles, and reinforcing steel bars, as well as standard strength carbon, intermediate alloy hardness, and premium grade rail products; engineered special-bar-quality products, merchant-bar-quality products, and other engineered round steel bars; channels, angles, flats, merchant rounds, and reinforcing steel bars; and specialty shapes and light structural steel products. This segment also engages in turning, polishing, straightening, chamfering, precision saw-cutting, and heat treating of bar products. Its products are used in construction, automotive, manufacturing, transportation, heavy and agriculture equipment, and pipe and tube markets. The Metals Recycling Operations segment is involved in the ferrous and nonferrous scrap metal processing, transportation, marketing, brokerage, and scrap management services. Its ferrous products include heavy melting steel, busheling, bundled scrap, shredded scrap, steel turnings, and cast-iron products; and nonferrous products comprise aluminum, brass, copper, stainless steel, and other nonferrous metals. The Steel Fabrication Operations segment produces steel non-residential building components, such as steel joists, girders, trusses, and steel deck products for non-residential steel fabricators, metal building companies, general construction contractors, developers, owners, brokers, and governmental entities, as well as e-commerce warehouses, data centers, metal buildings, and education and commercial building projects. The Aluminum Operations segment offers recycled aluminum flat rolled products. The company also exports its products. Steel Dynamics, Inc. was founded in 1993 and is headquartered in Fort Wayne, Indiana.

About Vox Royalty

Vox Royalty Corp. operates as a mining royalty and streaming company. The company holds a portfolio of 60 royalties and streaming assets. It operates in Australia, Canada, Peru, Brazil, South Africa, Mexico, and the United States. Vox Royalty Corp. was founded in 2014 and is based in Toronto, Canada.