SunCoke Energy (NYSE: SXC) and AK Steel (NYSE:AKS) are both small-cap oils/energy companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, institutional ownership, dividends, risk, earnings, analyst recommendations and profitability.
Insider and Institutional Ownership
91.3% of SunCoke Energy shares are held by institutional investors. Comparatively, 63.7% of AK Steel shares are held by institutional investors. 3.9% of SunCoke Energy shares are held by company insiders. Comparatively, 1.1% of AK Steel shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This table compares SunCoke Energy and AK Steel’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
This table compares SunCoke Energy and AK Steel’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|SunCoke Energy||$1.33 billion||0.67||$122.40 million||$0.28||49.46|
|AK Steel||$6.08 billion||0.24||$6.19 million||$0.31||15.06|
SunCoke Energy has higher earnings, but lower revenue than AK Steel. AK Steel is trading at a lower price-to-earnings ratio than SunCoke Energy, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings for SunCoke Energy and AK Steel, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
SunCoke Energy currently has a consensus target price of $13.50, indicating a potential downside of 2.53%. AK Steel has a consensus target price of $5.91, indicating a potential upside of 26.57%. Given AK Steel’s higher probable upside, analysts clearly believe AK Steel is more favorable than SunCoke Energy.
Risk and Volatility
SunCoke Energy has a beta of 1.18, meaning that its stock price is 18% more volatile than the S&P 500. Comparatively, AK Steel has a beta of 2.88, meaning that its stock price is 188% more volatile than the S&P 500.
SunCoke Energy Company Profile
SunCoke Energy, Inc. operates as an independent producer of coke in the Americas. The company operates through three segments: Domestic Coke, Brazil Coke, and Logistics. It offers metallurgical and thermal coal. The company also provides handling and/or mixing services to steel, coke, electric utility, coal producing, and other manufacturing based customers. SunCoke Energy, Inc. was founded in 1960 and is headquartered in Lisle, Illinois.
AK Steel Company Profile
AK Steel Holding Corporation, through its subsidiary, AK Steel Corporation, produces flat-rolled carbon, stainless, and electrical steels, and tubular products in the United States and internationally. It produces flat-rolled carbon steel products, including coated, cold-rolled, and hot-rolled carbon steel products; grain-oriented specialty stainless and electrical steels; and carbon and stainless steel tubing products. The company also buys and sells steel and steel products, as well as other materials; and produces metallurgical coal from reserves in Somerset County, Pennsylvania. It sells its flat-rolled carbon steel products primarily to automotive manufacturers; customers in the infrastructure and manufacturing markets, including the manufacturers of power transmission and distribution transformers, who produce equipment for the electrical grid, as well as electrical motors and generators; and manufacturers of heating, ventilation and air conditioning equipment, and appliances. The company also sells its carbon steel products to distributors, service centers, and converters. AK Steel Holding Corporation was founded in 1993 and is headquartered in West Chester, Ohio.
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