Comparing AK Steel (AKS) & The Competition

AK Steel (NYSE: AKS) is one of 22 public companies in the “Blast furnaces & steel mills” industry, but how does it contrast to its competitors? We will compare AK Steel to similar businesses based on the strength of its dividends, analyst recommendations, risk, profitability, earnings, institutional ownership and valuation.

Institutional & Insider Ownership

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67.8% of AK Steel shares are owned by institutional investors. Comparatively, 54.6% of shares of all “Blast furnaces & steel mills” companies are owned by institutional investors. 0.8% of AK Steel shares are owned by insiders. Comparatively, 9.4% of shares of all “Blast furnaces & steel mills” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares AK Steel and its competitors revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
AK Steel $6.08 billion $6.19 million 14.61
AK Steel Competitors $12.28 billion $647.83 million 15.71

AK Steel’s competitors have higher revenue and earnings than AK Steel. AK Steel 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.

Volatility and Risk

AK Steel has a beta of 2.74, suggesting that its share price is 174% more volatile than the S&P 500. Comparatively, AK Steel’s competitors have a beta of 1.56, suggesting that their average share price is 56% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for AK Steel and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AK Steel 1 9 5 0 2.27
AK Steel Competitors 303 899 1068 50 2.37

AK Steel presently has a consensus price target of $6.61, indicating a potential upside of 45.85%. As a group, “Blast furnaces & steel mills” companies have a potential upside of 14.98%. Given AK Steel’s higher possible upside, analysts plainly believe AK Steel is more favorable than its competitors.

Profitability

This table compares AK Steel and its competitors’ 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 4.25% 10.75% 3.42%

Summary

AK Steel competitors beat AK Steel on 9 of the 13 factors compared.

About AK Steel

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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