Ossen Innovation (NASDAQ:OSN) and Steel Dynamics (NASDAQ:STLD) are both construction companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.
This is a breakdown of recent recommendations and price targets for Ossen Innovation and Steel Dynamics, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Steel Dynamics has a consensus target price of $53.50, indicating a potential upside of 30.97%. Given Steel Dynamics’ higher probable upside, analysts plainly believe Steel Dynamics is more favorable than Ossen Innovation.
Earnings & Valuation
This table compares Ossen Innovation and Steel Dynamics’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Ossen Innovation||$132.38 million||0.10||$5.34 million||N/A||N/A|
|Steel Dynamics||$9.54 billion||1.01||$812.74 million||$2.65||15.42|
Steel Dynamics has higher revenue and earnings than Ossen Innovation.
This table compares Ossen Innovation and Steel Dynamics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
0.8% of Ossen Innovation shares are held by institutional investors. Comparatively, 83.1% of Steel Dynamics shares are held by institutional investors. 60.0% of Ossen Innovation shares are held by company insiders. Comparatively, 4.4% of Steel Dynamics shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Steel Dynamics pays an annual dividend of $0.75 per share and has a dividend yield of 1.8%. Ossen Innovation does not pay a dividend. Steel Dynamics pays out 28.3% of its earnings in the form of a dividend. Steel Dynamics has raised its dividend for 5 consecutive years.
Risk & Volatility
Ossen Innovation has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500. Comparatively, Steel Dynamics has a beta of 1.35, indicating that its share price is 35% more volatile than the S&P 500.
Steel Dynamics beats Ossen Innovation on 11 of the 14 factors compared between the two stocks.
About Ossen Innovation
Ossen Innovation Co., Ltd. manufactures and sells various plain surface prestressed steel materials, and rare earth coated and zinc coated prestressed steel materials in the People's Republic of China and internationally. The company offers plain surface products, including plain surface prestressed concrete (PC) strands that are used as precast concrete plates on the riding surface of bridges; and unbonded plain surface PC strands for the construction of bridges and buildings. It also provides plain surface PC wires and indented PC wires, which are used in the construction of buildings; helical rib PC wires for the construction of railway ties or sleepers, and buildings; and coated prestressed products comprising zinc coated PC and rare earth coated PC products. The company markets and sells its products under the Ossen brand name. Ossen Innovation Co., Ltd. also exports its products to the United States, Canada, Spain, Japan, South Korea, Taiwan, Australia, South Africa, Saudi Arabia, and internationally. The company was founded in 2010 and is based in Shanghai, the People's Republic of China.
About Steel Dynamics
Steel Dynamics, Inc., together with its subsidiaries, engages in the steel products manufacturing and metals recycling businesses in the United States and internationally. The company operates through three segments: Steel Operations, Metals Recycling Operations, and Steel Fabrication Operations. The Steel Operations segment provides hot roll, cold roll, and coated steel products; structural steel beams, pilings, and standard and premium grade rail products; engineered special-bar-quality products; merchant bar products, including angles, merchant rounds, flats, channels, and reinforcing bars; beams, channels, and specialty steel sections; and threaded rod products, and cold drawn and heat treated bars. Its products are used in construction, automotive, manufacturing, transportation, heavy and agriculture equipment, and pipe and tube industry sectors. This segment sells its products directly to end-users, steel fabricators, and service centers. The Metals Recycling Operations segment is involved in the purchase, process, and resale of ferrous and nonferrous scrap metals into reusable forms and grades. Its ferrous products include heavy melting steel, busheling, bundled scrap, shredded scrap, steel turnings, and cast iron products; and nonferrous products comprise aluminum, brass, copper, stainless steel, and other nonferrous metals. This segment also provides transportation logistics, scrap management, marketing, and brokerage services. The Steel Fabrication Operations segment produces steel building components comprising steel joists, girders, trusses, and steel deck products for non-residential steel fabricators. Steel Dynamics, Inc. was founded in 1993 and is headquartered in Fort Wayne, Indiana.
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