Analyzing SSAB SVENSKT ST/ADR (OTCMKTS:SSAAY) and Wesfarmers (OTCMKTS:NPSCY)

SSAB SVENSKT ST/ADR (OTCMKTS:SSAAY) and Wesfarmers (OTCMKTS:NPSCY) are both mid-cap basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Risk and Volatility

SSAB SVENSKT ST/ADR has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500. Comparatively, Wesfarmers has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500.

Dividends

SSAB SVENSKT ST/ADR pays an annual dividend of $0.05 per share and has a dividend yield of 5.1%. Wesfarmers pays an annual dividend of $0.12 per share and has a dividend yield of 1.3%. SSAB SVENSKT ST/ADR pays out 83.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Wesfarmers pays out 4.7% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares SSAB SVENSKT ST/ADR and Wesfarmers’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SSAB SVENSKT ST/ADR $8.09 billion 0.25 $113.75 million $0.06 16.22
Wesfarmers $55.60 billion 0.16 $2.26 billion $2.54 3.75

Wesfarmers has higher revenue and earnings than SSAB SVENSKT ST/ADR. Wesfarmers is trading at a lower price-to-earnings ratio than SSAB SVENSKT ST/ADR, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and recommmendations for SSAB SVENSKT ST/ADR and Wesfarmers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SSAB SVENSKT ST/ADR 0 0 0 0 N/A
Wesfarmers 0 1 0 0 2.00

Institutional and Insider Ownership

0.0% of Wesfarmers shares are owned by institutional investors. 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.

Profitability

This table compares SSAB SVENSKT ST/ADR and Wesfarmers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SSAB SVENSKT ST/ADR 1.68% 2.04% 1.29%
Wesfarmers -5.53% -9.49% -4.24%

About SSAB SVENSKT ST/ADR

SSAB AB (publ) produces and sells steel products in Sweden. It operates through five segments: SSAB Special Steels, SSAB Europe, SSAB Americas, Tibnor, and Ruukki Construction. The company offers wear steels for payload and service life; structural steel; pre-hardened tool steel; and protection plates, as well as quenched and tempered steels, and hot-rolled advanced high-strength steel products. It also provides hot-rolled plates, hot-rolled strips, cold-rolled strips, metal-coated strips, color-coated strips, tubes and sections, and infrastructure products. In addition, the company offers heavy plates and coils; engineering steel and long products comprising beams, merchant bars, and hollow sections; stainless steel and non-ferrous metals primarily comprising aluminum and copper; steel roofs, rainwater systems, and accessories for residential construction; and components that include sandwich panels, load-bearing sheets, and fa├žade claddings for non-residential construction. Further, it offers frame solutions used in non-residential buildings; bridges; design and installation services; parts and kits and wear parts; and prefabrication, engineering and processing, and value added services. It also exports its products primarily in Europe. The company markets its steel products under the Strenx, Hardox, Docol, GreenCoat, Toolox, Armox, SSAB Boron, SSAB Domex, SSAB Form, SSAB Laser, SSAB Weathering and Cor-Ten, and SSAB Multisteel brands. It provides its products for customers in the heavy transport, construction building and infrastructure, automotive, industrial, construction machinery, energy, and material handling, as well as service centers. SSAB AB (publ) was founded in 1978 and is headquartered in Stockholm, Sweden.

About Wesfarmers

Nippon Steel Corporation, together with its subsidiaries, engages in steelmaking and steel fabrication, engineering and construction, chemicals and materials, and system solutions businesses in Japan and internationally. The Steelmaking and Steel Fabrication segment offers steel plates and sheets; bars, beams, shapes, and rods; pipes and tubes; railway, automotive, and machinery parts; and stainless steel and titanium. The Engineering and Construction segment plans, designs, and constructs various construction projects, including industrial plants, environmental and energy plants, civil engineering projects, and large steel structures, such as skyscrapers and oil and gas pipelines. This segment also involved in the manufacturing and sale of industrial machinery, and equipment and steel structures; and waste processing and recycling, and supplying of electricity, gas, and heat. The Chemicals and Materials segment produces and sells various materials, including coal-based chemical products, petrochemicals, electronic materials, and components for semiconductors and electronic parts, carbon fiber, and composite products, as well as products that apply technologies for metal processing. The System Solutions segment provides computer system engineering and consulting services, information technology outsourcing services, and other client-oriented information technology business solutions to customers in manufacturing and consumer products industries. The company serves automotive, energy and resources, construction, appliance, machinery, equipment, and transportation industries. The company was formerly known as Nippon Steel & Sumitomo Metal Corporation and changed its name to Nippon Steel Corporation in April 2019. Nippon Steel Corporation was founded in 1949 and is based in Tokyo, Japan.

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