Carpenter Technology (NYSE:CRS – Get Free Report) and Worthington Steel (NYSE:WS – Get Free Report) are both basic materials companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, profitability, valuation, dividends and risk.
Profitability
This table compares Carpenter Technology and Worthington Steel’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Carpenter Technology | 12.26% | 21.16% | 10.85% |
| Worthington Steel | 3.58% | 9.54% | 6.10% |
Analyst Recommendations
This is a summary of current ratings and target prices for Carpenter Technology and Worthington Steel, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Carpenter Technology | 0 | 1 | 4 | 0 | 2.80 |
| Worthington Steel | 0 | 0 | 1 | 0 | 3.00 |
Valuation and Earnings
This table compares Carpenter Technology and Worthington Steel”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Carpenter Technology | $2.76 billion | 5.01 | $186.50 million | $7.06 | 39.32 |
| Worthington Steel | $3.09 billion | 0.53 | $154.70 million | $2.14 | 15.02 |
Carpenter Technology has higher earnings, but lower revenue than Worthington Steel. Worthington Steel is trading at a lower price-to-earnings ratio than Carpenter Technology, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
92.0% of Carpenter Technology shares are owned by institutional investors. Comparatively, 45.4% of Worthington Steel shares are owned by institutional investors. 2.9% of Carpenter Technology shares are owned by company insiders. Comparatively, 2.2% of Worthington Steel shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Volatility & Risk
Carpenter Technology has a beta of 1.37, suggesting that its stock price is 37% more volatile than the S&P 500. Comparatively, Worthington Steel has a beta of 1.64, suggesting that its stock price is 64% more volatile than the S&P 500.
Dividends
Carpenter Technology pays an annual dividend of $0.80 per share and has a dividend yield of 0.3%. Worthington Steel pays an annual dividend of $0.64 per share and has a dividend yield of 2.0%. Carpenter Technology pays out 11.3% of its earnings in the form of a dividend. Worthington Steel pays out 29.9% 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.
Summary
Carpenter Technology beats Worthington Steel on 11 of the 16 factors compared between the two stocks.
About Carpenter Technology
Carpenter Technology Corporation engages in the manufacture, fabrication, and distribution of specialty metals in the United States, Europe, the Asia Pacific, Mexico, Canada, and internationally. It operates in two segments, Specialty Alloys Operations and Performance Engineered Products. The company offers specialty alloys, including titanium alloys, powder metals, stainless steels, alloy steels, and tool steels, as well as additives, and metal powders and parts. It serves to aerospace, defense, medical, transportation, energy, industrial, and consumer markets. The company was founded in 1889 and is headquartered in Philadelphia, Pennsylvania.
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.
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