Analyzing AK Steel (AKS) & Its Competitors

AK Steel (NYSE: AKS) is one of 61 publicly-traded companies in the “STEEL” industry, but how does it weigh in compared to its rivals? We will compare AK Steel to similar companies based on the strength of its risk, profitability, institutional ownership, earnings, valuation, analyst recommendations and dividends.

Analyst Ratings

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This is a breakdown of recent recommendations and price targets for AK Steel and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AK Steel 1 9 5 0 2.27
AK Steel Competitors 436 1414 1501 70 2.35

AK Steel currently has a consensus price target of $6.61, suggesting a potential upside of 45.85%. As a group, “STEEL” companies have a potential upside of 13.74%. Given AK Steel’s higher probable upside, equities analysts plainly believe AK Steel is more favorable than its rivals.

Valuation & Earnings

This table compares AK Steel and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
AK Steel $6.08 billion $6.19 million 14.61
AK Steel Competitors $10.00 billion $429.38 million 40.48

AK Steel’s rivals have higher revenue and earnings than AK Steel. AK Steel 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 AK Steel and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AK Steel 0.16% 71.24% 2.64%
AK Steel Competitors -546.17% 10.50% 6.34%

Risk & Volatility

AK Steel has a beta of 2.74, indicating that its stock price is 174% more volatile than the S&P 500. Comparatively, AK Steel’s rivals have a beta of 1.72, indicating that their average stock price is 72% more volatile than the S&P 500.

Institutional & Insider Ownership

67.8% of AK Steel shares are held by institutional investors. Comparatively, 52.9% of shares of all “STEEL” companies are held by institutional investors. 0.8% of AK Steel shares are held by company insiders. Comparatively, 11.3% of shares of all “STEEL” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

AK Steel rivals beat AK Steel on 8 of the 13 factors compared.

AK Steel Company Profile

AK Steel Holding Corporation is a producer of flat-rolled carbon, stainless and electrical steels, and tubular products through its subsidiary, AK Steel Corporation (AK Steel). The Company also operates blast furnaces and electric arc furnaces. As of December 31, 2016, its operations included eight steelmaking and finishing plants, two coke plants and two tube manufacturing plants across states, including Indiana, Kentucky, Michigan, Ohio, Pennsylvania and West Virginia, and a tube manufacturing plant in Mexico. These operations produce flat-rolled carbon, specialty stainless and electrical steels that it sells in sheet and strip form, and carbon and stainless steel that it finishes into welded steel tubing. It also produces metallurgical coal through its subsidiary, AK Coal Resources, Inc. In addition, the Company operates trading companies in Mexico and Europe that buy and sell steel and steel products and other materials.

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