Reviewing Nucor Corporation (NUE) & Its Rivals

Nucor Corporation (NYSE: NUE) is one of 28 public companies in the “Steel” industry, but how does it weigh in compared to its peers? We will compare Nucor Corporation to similar companies based on the strength of its analyst recommendations, risk, earnings, profitability, dividends, valuation and institutional ownership.

Earnings and Valuation

This table compares Nucor Corporation and its peers gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Nucor Corporation $18.24 billion $2.67 billion 16.55
Nucor Corporation Competitors $7.78 billion $1.01 billion 36.52

Nucor Corporation has higher revenue and earnings than its peers. Nucor Corporation is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

Nucor Corporation has a beta of 1.54, meaning that its share price is 54% more volatile than the S&P 500. Comparatively, Nucor Corporation’s peers have a beta of 1.37, meaning that their average share price is 37% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Nucor Corporation and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nucor Corporation 0 6 9 0 2.60
Nucor Corporation Competitors 290 837 947 29 2.34

Nucor Corporation presently has a consensus target price of $67.24, suggesting a potential upside of 17.73%. As a group, “Steel” companies have a potential upside of 4.08%. Given Nucor Corporation’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Nucor Corporation is more favorable than its peers.

Insider and Institutional Ownership

74.8% of Nucor Corporation shares are held by institutional investors. Comparatively, 58.1% of shares of all “Steel” companies are held by institutional investors. 0.7% of Nucor Corporation shares are held by insiders. Comparatively, 7.6% of shares of all “Steel” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Nucor Corporation and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nucor Corporation 6.08% 13.39% 7.20%
Nucor Corporation Competitors -984.19% 5.66% 4.17%

Dividends

Nucor Corporation pays an annual dividend of $1.51 per share and has a dividend yield of 2.6%. Nucor Corporation pays out 43.8% of its earnings in the form of a dividend. As a group, “Steel” companies pay a dividend yield of 2.1% and pay out 60.2% of their earnings in the form of a dividend. Nucor Corporation has raised its dividend for 43 consecutive years. Nucor Corporation is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Summary

Nucor Corporation beats its peers on 12 of the 15 factors compared.

Nucor Corporation Company Profile

Nucor Corporation (Nucor) manufactures steel and steel products. The Company produces direct reduced iron (DRI) for use in its steel mills. It operates in three segments: steel mills, steel products and raw materials. The steel mills segment produces and distributes sheet steel (hot-rolled, cold-rolled and galvanized), plate steel, structural steel (wide-flange beams, beam blanks, H-piling and sheet piling) and bar steel (blooms, billets, concrete reinforcing bar, merchant bar, wire rod and special bar quality). The steel products segment produces steel joists and joist girders, steel deck, fabricated concrete reinforcing steel and cold finished steel. The raw materials produces DRI; brokers ferrous and nonferrous metals, pig iron, HBI and DRI; supplies ferro-alloys, and processes ferrous and nonferrous scrap metal. It also processes ferrous and nonferrous metals and brokers ferrous and nonferrous metals, pig iron, hot briquetted iron (HBI) and DRI.

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