Nippon Steel & Sumitomo Metal (NPSCY) versus The Competition Head to Head Review

Institutional and Insider 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 insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk and Volatility

Nippon Steel & Sumitomo Metal has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500. Comparatively, Nippon Steel & Sumitomo Metal’s rivals have a beta of 1.26, indicating that their average share price is 26% more volatile than the S&P 500.

Dividends

Nippon Steel & Sumitomo Metal pays an annual dividend of $0.25 per share and has a dividend yield of 4.0%. Nippon Steel & Sumitomo Metal pays out 34.7% of its earnings in the form of a dividend. As a group, “STEEL – PRODUCERS” companies pay a dividend yield of 2.3% and pay out 83.0% of their earnings in the form of a dividend. Nippon Steel & Sumitomo Metal is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Profitability

This table compares Nippon Steel & Sumitomo Metal and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nippon Steel & Sumitomo Metal	3.73%	5.54%	2.92%
Nippon Steel & Sumitomo Metal Competitors	2.01%	0.96%	1.37%

Valuation & Earnings

This table compares Nippon Steel & Sumitomo Metal and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Nippon Steel & Sumitomo Metal	$57.10 billion	$2.31 billion	8.76
Nippon Steel & Sumitomo Metal Competitors	$18.44 billion	$280.11 million	21.43

Nippon Steel & Sumitomo Metal has higher revenue and earnings than its rivals. Nippon Steel & Sumitomo Metal is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Nippon Steel & Sumitomo Metal beats its rivals on 7 of the 11 factors compared.

Nippon Steel & Sumitomo Metal Company Profile

Nippon Steel Corporation engages in steelmaking and steel fabrication, engineering and construction, chemicals and materials, and system solutions businesses in Japan and internationally. The company offers steel plates, sheets, and slags; bar and rod materials; structural steel; pipes and tubes; titanium and stainless products; and railway, automotive, and machinery parts for applications in automotive, energy, infrastructure, and consumer electronics markets. It is also involved in construction; waste processing and recycling; supplying electricity, gas, and heat; and the provision of coal-based chemical products, petrochemicals, electronic materials, materials and components for semiconductors and electronic parts, carbon fiber, and composite products. In addition, the company offers computer systems engineering and consulting, IT-enabled outsourcing, and other services. The company was formerly known as Nippon Steel & Sumitomo Metal Corporation and changed its name to Nippon Steel Corporation in April 2019. The company was incorporated in 1950 and is headquartered in Tokyo, Japan.