Analyzing Insteel Industries (IIIN) & Companhia Siderurgica Nacional (SID)

Insteel Industries (NASDAQ: IIIN) and Companhia Siderurgica Nacional (NYSE:SID) are both industrial products companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, valuation, dividends, risk and profitability.

Risk and Volatility

Insteel Industries has a beta of 2, indicating that its stock price is 100% more volatile than the S&P 500. Comparatively, Companhia Siderurgica Nacional has a beta of 2.76, indicating that its stock price is 176% more volatile than the S&P 500.

Profitability

This table compares Insteel Industries and Companhia Siderurgica Nacional’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Insteel Industries 6.18% 9.36% 7.21%
Companhia Siderurgica Nacional 7.12% 18.51% 3.28%

Valuation & Earnings

This table compares Insteel Industries and Companhia Siderurgica Nacional’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Insteel Industries $388.87 million 1.59 $22.54 million N/A N/A
Companhia Siderurgica Nacional $5.60 billion 0.55 $3.21 million N/A N/A

Insteel Industries has higher earnings, but lower revenue than Companhia Siderurgica Nacional.

Insider and Institutional Ownership

83.2% of Insteel Industries shares are owned by institutional investors. Comparatively, 2.9% of Companhia Siderurgica Nacional shares are owned by institutional investors. 5.7% of Insteel Industries shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Dividends

Insteel Industries pays an annual dividend of $0.12 per share and has a dividend yield of 0.4%. Companhia Siderurgica Nacional does not pay a dividend.

Analyst Recommendations

This is a breakdown of current recommendations for Insteel Industries and Companhia Siderurgica Nacional, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Insteel Industries 0 1 1 0 2.50
Companhia Siderurgica Nacional 0 4 1 0 2.20

Insteel Industries currently has a consensus price target of $34.00, suggesting a potential upside of 4.58%. Given Insteel Industries’ stronger consensus rating and higher probable upside, analysts clearly believe Insteel Industries is more favorable than Companhia Siderurgica Nacional.

Summary

Insteel Industries beats Companhia Siderurgica Nacional on 8 of the 12 factors compared between the two stocks.

Insteel Industries Company Profile

Insteel Industries, Inc., together with its subsidiaries, manufactures and markets steel wire reinforcing products for concrete construction applications. The company markets prestressed concrete strand (PC strand) and welded wire reinforcement (WWR). Its PC strand is a seven-wire strand that is used to impart compression forces into precast concrete elements and structures providing reinforcement for bridges, parking decks, buildings, and other concrete structures. The company's WWR engineered reinforcing product is used in nonresidential and residential construction. It produces a range of WWR products, including engineered structural mesh (ESM), concrete pipe reinforcement (CPR), and standard welded wire reinforcement (SWWR). ESM is an engineered made-to-order product that is used as the primary reinforcement for concrete elements or structures serving as a reinforcing solution for hot-rolled rebar; CPR is an engineered made-to-order product that is used as the primary reinforcement in concrete pipe, box culverts, and precast manholes for drainage and sewage systems, water treatment facilities, and other related applications; and SWWR is a secondary reinforcing product for crack control applications in residential and light nonresidential construction, including driveways, sidewalks, and various slab-on-grade applications. The company sells its products through sales representatives to the manufacturers of concrete products, distributors, rebar fabricators, and contractors primarily in the United States, as well as in Canada, Mexico, and Central and South America. Insteel Industries, Inc. was founded in 1953 and is headquartered in Mount Airy, North Carolina.

Companhia Siderurgica Nacional Company Profile

Companhia Siderúrgica Nacional operates as an integrated steel producer in Brazil. It operates through five segments: Steel, Mining, Logistics, Cement, and Energy. It produces a line of steel products, including slabs, hot and cold-rolled, galvanized, and tin mill products for the distribution, packaging, automotive, home appliance, and construction industries. It also explores for iron ore reserves at Casa de Pedra and Engenho mines located in the state of Minas Gerais; produces and sells cement; provides railroad and port logistics services; and generates electric power through hydroelectric power plants. The company also exports its products. Companhia Siderúrgica Nacional was founded in 1941 and is headquartered in Itaim Bibi, Brazil. Companhia Siderúrgica Nacional is a subsidiary of Vicunha Aços S.A.

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