Critical Survey: JFE (JFEEF) versus Its Peers

Volatility and Risk

JFE has a beta of 0.4, meaning that its stock price is 60% less volatile than the S&P 500. Comparatively, JFE’s rivals have a beta of 1.26, meaning that their average stock price is 26% more volatile than the S&P 500.

Institutional and Insider Ownership

54.8% of shares of all “STEEL – PRODUCERS” companies are held by institutional investors. 5.5% of shares of all “STEEL – PRODUCERS” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares JFE and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
JFE	$31.91 billion	$606.33 million	12.53
JFE Competitors	$20.61 billion	$280.11 million	21.37

JFE has higher revenue and earnings than its rivals. JFE 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.

Profitability

This table compares JFE and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
JFE	1.88%	3.56%	1.61%
JFE Competitors	2.01%	0.96%	1.37%

Summary

JFE rivals beat JFE on 5 of the 9 factors compared.

JFE Company Profile

JFE Holdings, Inc., through its subsidiaries, engages in steel, engineering, and trading businesses in Japan and internationally. Its Steel segment produces and sells various steel products, processed steel products, and raw materials, as well as operates in the transportation, facility maintenance, and construction businesses. The company's Engineering segment handles the engineering of energy, urban environment, steel structures and industrial machinery, recycling, and electricity retailing projects. Its Trading segment purchases, processes, and distributes steel products, raw materials for steel production, nonferrous metal products, food, etc. JFE Holdings, Inc. was incorporated in 2002 and is headquartered in Tokyo, Japan.