Companhia Siderúrgica Nacional (NYSE:SID) versus Vallourec (OTCMKTS:VLOUF) Financial Contrast

Companhia Siderúrgica Nacional (NYSE:SID) and Vallourec (OTCMKTS:VLOUF) are both basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, profitability, institutional ownership and earnings.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Companhia Siderúrgica Nacional and Vallourec, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Companhia Siderúrgica Nacional	2	0	0	0	1.00
Vallourec	0	0	0	0	N/A

Companhia Siderúrgica Nacional currently has a consensus target price of $2.95, suggesting a potential upside of 38.50%. Given Companhia Siderúrgica Nacional’s higher probable upside, research analysts clearly believe Companhia Siderúrgica Nacional is more favorable than Vallourec.

Profitability

This table compares Companhia Siderúrgica Nacional and Vallourec’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Companhia Siderúrgica Nacional	-0.34%	-0.79%	-0.17%
Vallourec	N/A	N/A	N/A

Valuation and Earnings

This table compares Companhia Siderúrgica Nacional and Vallourec”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Companhia Siderúrgica Nacional	$43.72 billion	0.07	-$63.74 million	$0.09	23.67
Vallourec	N/A	N/A	N/A	$2.00	7.43

Vallourec has lower revenue, but higher earnings than Companhia Siderúrgica Nacional. Vallourec is trading at a lower price-to-earnings ratio than Companhia Siderúrgica Nacional, indicating that it is currently the more affordable of the two stocks.

Dividends

Companhia Siderúrgica Nacional pays an annual dividend of $0.26 per share and has a dividend yield of 12.2%. Vallourec pays an annual dividend of $0.81 per share and has a dividend yield of 5.5%. Companhia Siderúrgica Nacional pays out 288.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Vallourec pays out 40.5% of its earnings in the form of a dividend.

Institutional and Insider Ownership

29.0% of Vallourec shares are held by institutional investors. 0.0% of Companhia Siderúrgica Nacional shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Vallourec beats Companhia Siderúrgica Nacional on 6 of the 11 factors compared between the two stocks.

About Companhia Siderúrgica Nacional

Companhia Siderúrgica Nacional operates as an integrated steel producer in Brazil and Latin America. It operates through five segments: Steel Industry, Mining, Logistics, Energy, and Cement. The company offers flat steel products, such as hot and cold rolled, galvanized, galvalume, pre-painted, and metal sheets products; coil, sheets, and derivatives; tiles and derivatives, pipes, and profiles; long steel products; steel packaging solutions for the food industry; chemical packaging solution; and carbochemical products. It also provides steel cutting services; produces and sells cement; operates railway and port facilities; and generates electric power from its thermoelectric co-generation and hydroelectric power plants. In addition, the company explores for iron ore reserves at Casa de Pedra and Engenho mines located in the city of Congonhas; and limestone and dolomite at the Bocaina mine located in the city of Arcos in the state of Minas Gerais, Brazil, as well as produces tin. Companhia Siderúrgica Nacional was founded in 1941 and is headquartered in São Paulo, Brazil.

About Vallourec

Vallourec S.A., through its subsidiaries, provides tubular solutions for the oil and gas, industry, and energy markets in Europe, North America, South America, Asia, the Middle East, and internationally. It operates through Tubes; Mine & Forests; and Holding Companies & Other segments. The company offers seamless tubes for refineries, petrochemical facilities, and floating liquefied natural gas plants, as well as production, storage, and offloading units; VAM connections; rigid subsea line pipes and onshore rigid line pipes; and carbon steel and steel alloy tubes, hollow bars, and connections. It also provides assistance in lowering tubes, inspecting connections, and supervising assembly; thread tubes inventory management; tube inspection, maintenance, and repair services; on-site services; preparation for drilling operations; well coordination and supply services based on the drilling programs; and integrated solutions for the subsea line pipe market comprising welding, coating, insulation, bending, logistics, project management, and service agreements. In addition, the company offers tubular products for geothermal; carbon capture, utilization, and storage; and hydrogen industries. Further, it provides tubes and hollow bars, as well as circular, square, rectangular, and octagonal sections for the manufacture of cranes, construction machinery, agricultural machinery, and hydraulic cylinders; and infrastructure construction, as well as axle tubes and gearbox applications for the automotive industry. Additionally, the company is involved in the iron ore and charcoal production businesses. It serves oil service, engineering, and construction companies; distributors and industrial equipment manufacturers; and energy companies, and carbon capture and storage specialists, as well as geothermal, green hydrogen, and solar developers. Vallourec S.A. was founded in 1895 and is based in Meudon, France.