Metallus (NYSE:MTUS) & Salzgitter (OTCMKTS:SZGPY) Critical Analysis

Metallus (NYSE:MTUS) and Salzgitter (OTCMKTS:SZGPY) are both materials companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.

Earnings & Valuation

This table compares Metallus and Salzgitter”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Metallus	$1.16 billion	0.68	-$1.20 million	$0.19	100.36
Salzgitter	$10.16 billion	0.32	-$83.95 million	$0.12	50.83

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

Analyst Ratings

This is a summary of recent ratings for Metallus and Salzgitter, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Metallus	0	3	0	0	2.00
Salzgitter	0	3	5	0	2.62

Institutional and Insider Ownership

77.6% of Metallus shares are held by institutional investors. 3.8% of Metallus shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Metallus and Salzgitter’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Metallus	0.66%	3.35%	2.02%
Salzgitter	0.65%	1.29%	0.54%

Volatility and Risk

Metallus has a beta of 1.36, meaning that its stock price is 36% more volatile than the S&P 500. Comparatively, Salzgitter has a beta of 1.7, meaning that its stock price is 70% more volatile than the S&P 500.

Summary

Metallus beats Salzgitter on 9 of the 13 factors compared between the two stocks.

About Metallus

Metallus Inc. manufactures and sells alloy steel, and carbon and micro-alloy steel products in the United States and internationally. The company offers special bar quality (SBQ) bars, seamless mechanical tubes, precision steel components, and billets that are used in gears, hubs, axles, crankshafts and motor shafts, oil country drill pipes, bits and collars, bearing races and rolling elements, bushings, fuel injectors, wind energy shafts, anti-friction bearings, artillery and mortar bodies, and other applications. It also provides custom-make precision steel components. It offers its products and services to the automotive, energy, industrial equipment, mining, construction, rail, aerospace and defense, heavy truck, agriculture, and power generation sectors. The company was formerly known as TimkenSteel Corporation and changed its name to Metallus Inc. in February 2024. Metallus Inc. was founded in 1899 and is headquartered in Canton, Ohio.

About Salzgitter

Salzgitter AG, together with its subsidiaries, engages in steel and technology businesses worldwide. It operates through four segments: Steel Production, Steel Processing, Trading, and Technology. The Steel Production segment manufactures steel and special steels, such as hot-rolled wide strip, steel sheet, sections, tailored blanks, as well as scrap trading. The Steel Processing segment produces various high-grade heavy plates; and manufactures line pipes, HFI-welded tubes, and precision and stainless-steel tubes. The Trading segment operates a European sales network, as well as trading companies and agencies worldwide. The Technology segment engages in the provision of machinery and plants for the filling and packaging of beverages, as well as special machinery engineering for shoe manufacturing and elastomer production. The company also provides IT, facility management, logistics, automotive engineering, and research and development services, as well as supplies raw materials. The company was founded in 1858 and is headquartered in Salzgitter, Germany.