China Precision Steel (OTCMKTS:CPSL) and United States Steel (NYSE:X) are both basic materials companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, dividends, risk, profitability, institutional ownership and earnings.
Institutional & Insider Ownership
68.3% of United States Steel shares are held by institutional investors. 0.4% of China Precision Steel shares are held by company insiders. Comparatively, 1.0% of United States Steel shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
This table compares China Precision Steel and United States Steel’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|China Precision Steel||N/A||N/A||N/A|
|United States Steel||5.01%||21.69%||7.66%|
United States Steel pays an annual dividend of $0.20 per share and has a dividend yield of 0.7%. China Precision Steel does not pay a dividend. United States Steel pays out 10.3% of its earnings in the form of a dividend.
Valuation & Earnings
This table compares China Precision Steel and United States Steel’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|China Precision Steel||N/A||N/A||N/A||N/A||N/A|
|United States Steel||$12.25 billion||0.42||$387.00 million||$1.94||14.88|
United States Steel has higher revenue and earnings than China Precision Steel.
This is a summary of current ratings and recommmendations for China Precision Steel and United States Steel, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|China Precision Steel||0||0||0||0||N/A|
|United States Steel||3||6||6||0||2.20|
United States Steel has a consensus price target of $39.97, suggesting a potential upside of 38.50%. Given United States Steel’s higher possible upside, analysts plainly believe United States Steel is more favorable than China Precision Steel.
United States Steel beats China Precision Steel on 9 of the 10 factors compared between the two stocks.
China Precision Steel Company Profile
China Precision Steel, Inc., a steel processing company, manufactures and sells cold-rolled precision steel products. It produces and sells precision cold-rolled steel products ranging from 7.5 mm to 0.03 mm. The company's steel products comprise cold-rolled and hard-rolled low carbon steel products for steel roofing, food packaging, dry batteries, electronic devices, and kitchen tools; cold-rolled and hard-rolled high carbon steel products for automobile parts and components, grinding pieces, saw blades, and weaving needles; and tailor made cold rolled steel products. It also provides heat treatment, and cutting and slitting services for medium and high-carbon hot-rolled steel strips not exceeding 7.5 mm thickness. The company sells its products to component manufacturers and directly to the end-users in the People's Republic of China, Indonesia, Thailand, the Caribbean, Nigeria, Ethiopia, and Turkey. China Precision Steel, Inc. is headquartered in Sheung Wan, Hong Kong.
United States Steel Company Profile
United States Steel Corporation produces and sells flat-rolled and tubular steel products primarily in North America and Europe. It operates through three segments: Flat-Rolled Products (Flat-Rolled), U. S. Steel Europe (USSE), and Tubular Products (Tubular). The Flat-Rolled segment offers slabs, rounds, strip mill plates, sheets, and tin mill products. This segment serves customers in the service center, conversion, automotive, construction, container, and appliance and electrical markets. The USSE segment provides slabs, sheets, strip mill plates, tin mill products, and spiral welded pipes, as well as heating radiators and refractory ceramic materials. This segment serves customers in the construction, service center, conversion, container, transportation, appliance and electrical, oil, gas, and petrochemical markets. The Tubular segment offers seamless and electric resistance welded steel casing and tubing products; and standard and line pipe and mechanical tubing products primarily to customers in the oil, gas, and petrochemical markets. The company also provides railroad services; and owns, develops, and manages various real estate assets. United States Steel Corporation was founded in 1901 and is headquartered in Pittsburgh, Pennsylvania.
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