Financial Review: Outokumpu (OUTKY) & Its Rivals

Outokumpu (OTCMKTS:OUTKY) is one of 27 public companies in the “STEEL – PRODUCERS” industry, but how does it contrast to its competitors? We will compare Outokumpu to related businesses based on the strength of its valuation, institutional ownership, profitability, analyst recommendations, earnings, risk and dividends.

Insider and Institutional Ownership

53.3% of shares of all “STEEL – PRODUCERS” companies are held by institutional investors. 5.3% of shares of all “STEEL – PRODUCERS” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility and Risk

Outokumpu has a beta of 0.53, meaning that its share price is 47% less volatile than the S&P 500. Comparatively, Outokumpu’s competitors have a beta of 1.26, meaning that their average share price is 26% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Outokumpu and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Outokumpu	1	0	0	0	1.00
Outokumpu Competitors	434	1542	1654	59	2.36

As a group, “STEEL – PRODUCERS” companies have a potential upside of 9.49%. Given Outokumpu’s competitors stronger consensus rating and higher probable upside, analysts plainly believe Outokumpu has less favorable growth aspects than its competitors.

Valuation & Earnings

This table compares Outokumpu and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Outokumpu	$6.43 billion	-$43.28 million	-47.50
Outokumpu Competitors	$18.41 billion	$280.11 million	20.87

Outokumpu’s competitors have higher revenue and earnings than Outokumpu. Outokumpu is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Dividends

Outokumpu pays an annual dividend of $0.04 per share and has a dividend yield of 2.1%. Outokumpu pays out -100.0% of its earnings in the form of a dividend. As a group, “STEEL – PRODUCERS” companies pay a dividend yield of 2.4% and pay out 97.5% of their earnings in the form of a dividend.

Profitability

This table compares Outokumpu and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Outokumpu	-0.57%	-0.92%	-0.56%
Outokumpu Competitors	2.01%	0.96%	1.37%

Summary

Outokumpu competitors beat Outokumpu on 14 of the 15 factors compared.

Outokumpu Company Profile

Outokumpu Oyj produces and sells various stainless steel products in Finland, other European countries, North America, the Asia-Pacific, and internationally. The company operates through three segments: Europe, Americas, and Ferrochrome. It offers cold rolled coils, strips, and sheets; hot rolled coils, strips, and plates; quarto plates; precision strips; and specialized components, such as welded stainless-steel I-beams, H-beams, hollow-section tubes, bent profiles, structural sections, hardened and customized press plates, suction roll shells, and blancs and disks. The company also provides stainless steel powder which includes Supra 316L, Dura 17-4PH, Ultra 904L, Therma 253MA, Dura 4116, and Ni-free austenitic stainless steel powder; and nickel-based alloys. Its products are used in various applications, including commercial kitchen, cooking, food industry, and home appliances; automotive and transportation; building and infrastructure; energy; marine; and heavy industries. The company was founded in 1910 and is headquartered in Helsinki, Finland.