Analyzing SSAB (SSAAY) and Insteel Industries (NASDAQ:IIIN)

SSAB (OTCMKTS: SSAAY) and Insteel Industries (NASDAQ:IIIN) are both basic materials companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.

Profitability

This table compares SSAB and Insteel Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SSAB 3.60% 4.58% 2.75%
Insteel Industries 6.18% 9.36% 7.21%

Valuation & Earnings

This table compares SSAB and Insteel Industries’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SSAB $7.74 billion 0.72 $269.20 million $0.13 20.77
Insteel Industries $388.87 million 1.60 $22.54 million N/A N/A

SSAB has higher revenue and earnings than Insteel Industries.

Insider & Institutional Ownership

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

Dividends

SSAB pays an annual dividend of $0.04 per share and has a dividend yield of 1.5%. Insteel Industries pays an annual dividend of $0.12 per share and has a dividend yield of 0.4%. SSAB pays out 30.8% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of current ratings and target prices for SSAB and Insteel Industries, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SSAB 0 0 0 0 N/A
Insteel Industries 0 1 1 0 2.50

Insteel Industries has a consensus price target of $34.00, suggesting a potential upside of 3.98%. Given Insteel Industries’ higher possible upside, analysts plainly believe Insteel Industries is more favorable than SSAB.

Volatility & Risk

SSAB has a beta of 1.47, indicating that its share price is 47% more volatile than the S&P 500. Comparatively, Insteel Industries has a beta of 2, indicating that its share price is 100% more volatile than the S&P 500.

Summary

Insteel Industries beats SSAB on 11 of the 14 factors compared between the two stocks.

SSAB Company Profile

SSAB AB (publ) produces and sells steel products in Sweden. It operates in 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; prehardened 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 plate products, including plate coils, heat treated plates, and normalized plates; and other products, such as hot-rolled coils, cold-rolled coils, metal-coated products, and pre-painted products. Further, it provides engineering steel and long products comprising beams, merchant bars, hollow sections, and rebars; 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 façade claddings for non-residential construction. Additionally, the company offers frame solutions used in non-residential buildings; and delivery package optimization, and design and installation services, as well as spare parts, and aftermarket and value added services. It also exports its products primarily in Europe. The company markets its steel products under the Hardox, Strenx, Raex, Toolox, Armox, Ramor, Docol, GreenCoat, SSAB Boron, SSAB Domex, SSAB Form, SSAB Laser, and SSAB Weathering brands. It provides its products for customers in the heavy transport, automotive, material handling, construction machinery, energy, and construction industries, as well as applications for protection steel and tool steel products, and steel service centers and distributors. SSAB AB (publ) was founded in 1978 and is headquartered in Stockholm, Sweden.

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.

Receive News & Ratings for SSAB Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for SSAB and related companies with MarketBeat.com's FREE daily email newsletter.

Latest News

Foxconn Launches Investigation After Reports Of Harsh Working Conditions At Its Factory Foxconn has announced that it has launched investigations into allegations of harsh working conditions at its factory. The company made the announcement after China Labor Watch, which is based in the New York, published a report that indicated Amazon’s workers were being subjected to many hours of work, inadequate training, low wages as well as over dependence on temporary workers. Undercover investigation Before compiling the report, an investigator from China Labor Watch went underground and acted as a worker in the factory. He then interviewed 20 workers, as well as took time to observe the conditions. During the period of investigation, the undercover investigator secured a position in the factory to clean Echo Dot speakers using a toothbrush soaked in rubbing alcohol to remove dust.  In its investigation, China Labor Watch said around 40% of the employees at the factory were on temporary basis. This is far beyond the 10% that is legally allowed under the Chinese law. Additionally, the investigation also found out that dispatch employees were paid at the same rate for both regular and overtime hours.  According to the investigation, the company was paying dispatch workers $2.26 per hour. Additionally, workers were working over 100 hours in over time every month during peak season. This is way beyond the 36 hours of overtime allowed under the law. Additionally, some workers worked for 14 consecutive days.   Amazon’s audit  In its response, Amazon said it carried out an audit of the factory and found that dispatch workers and overtime are matters of great concern. Amazon in a statement, said following the revelation, it requested Foxconn to put in place a corrective plan. Amazon said it is currently monitoring the response from Foxconn as well as the compliance with its Supplier Code of Conduct. Amazon expressed its commitment to ensuring that the matter is fully resolved.  Echo Speakers Amazon, which is the largest online retailer in the world, sells a variety of devices. The company uses tablets and kindles to sell more digital books.   Foxconn, which is based in Taiwan is the largest manufacturer of contract electronics in the world and has a headcount of over a million people. The company, which makes Apple iPhones made headlines following as series of suicides at its plant. The suicides were linked to poor working conditions at the plant to which the company responded with a promise to improve the working conditions.
Foxconn Launches Investigation After Reports Of Harsh Working Conditions At Its Factory Foxconn has announced that it has launched investigations into allegations of harsh working conditions at its factory. The company made the announcement after China Labor Watch, which is based in the New York, published a report that indicated Amazon’s workers were being subjected to many hours of work, inadequate training, low wages as well as over dependence on temporary workers. Undercover investigation Before compiling the report, an investigator from China Labor Watch went underground and acted as a worker in the factory. He then interviewed 20 workers, as well as took time to observe the conditions. During the period of investigation, the undercover investigator secured a position in the factory to clean Echo Dot speakers using a toothbrush soaked in rubbing alcohol to remove dust. In its investigation, China Labor Watch said around 40% of the employees at the factory were on temporary basis. This is far beyond the 10% that is legally allowed under the Chinese law. Additionally, the investigation also found out that dispatch employees were paid at the same rate for both regular and overtime hours. According to the investigation, the company was paying dispatch workers $2.26 per hour. Additionally, workers were working over 100 hours in over time every month during peak season. This is way beyond the 36 hours of overtime allowed under the law. Additionally, some workers worked for 14 consecutive days. Amazon’s audit In its response, Amazon said it carried out an audit of the factory and found that dispatch workers and overtime are matters of great concern. Amazon in a statement, said following the revelation, it requested Foxconn to put in place a corrective plan. Amazon said it is currently monitoring the response from Foxconn as well as the compliance with its Supplier Code of Conduct. Amazon expressed its commitment to ensuring that the matter is fully resolved. Echo Speakers Amazon, which is the largest online retailer in the world, sells a variety of devices. The company uses tablets and kindles to sell more digital books. Foxconn, which is based in Taiwan is the largest manufacturer of contract electronics in the world and has a headcount of over a million people. The company, which makes Apple iPhones made headlines following as series of suicides at its plant. The suicides were linked to poor working conditions at the plant to which the company responded with a promise to improve the working conditions.

Leave a Reply