Salzgitter (OTCMKTS:SZGPY) versus ThyssenKrupp (OTCMKTS:TKAMY) Critical Comparison

Salzgitter (OTCMKTS:SZGPYGet Free Report) and ThyssenKrupp (OTCMKTS:TKAMYGet Free Report) are both mid-cap basic materials companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, institutional ownership and valuation.

Profitability

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

Net Margins Return on Equity Return on Assets
Salzgitter -0.78% -1.61% -0.68%
ThyssenKrupp 1.83% 9.08% 3.29%

Earnings & Valuation

This table compares Salzgitter and ThyssenKrupp”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Salzgitter $10.16 billion 0.30 -$83.93 million ($0.15) -37.60
ThyssenKrupp $36.31 billion 0.18 $514.57 million $1.08 9.57

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

Volatility & Risk

Salzgitter has a beta of 1.54, meaning that its share price is 54% more volatile than the S&P 500. Comparatively, ThyssenKrupp has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500.

Dividends

Salzgitter pays an annual dividend of $0.01 per share and has a dividend yield of 0.2%. ThyssenKrupp pays an annual dividend of $0.11 per share and has a dividend yield of 1.1%. Salzgitter pays out -6.7% of its earnings in the form of a dividend. ThyssenKrupp pays out 10.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Salzgitter and ThyssenKrupp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Salzgitter 1 4 3 0 2.25
ThyssenKrupp 2 2 2 0 2.00

Summary

ThyssenKrupp beats Salzgitter on 8 of the 13 factors compared between the two stocks.

About Salzgitter

(Get Free Report)

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.

About ThyssenKrupp

(Get Free Report)

thyssenkrupp AG operates as an industrial and technology company in Germany and internationally. It operates through five segments: Automotive Technology, Decarbon Technologies, Materials Services, Steel Europe, and Marine Systems. The Automotive Technology segment offers components, systems, and automation solutions for vehicle manufacturing, such as axle assembly, body in white, camshafts and electric engine components, dampers, dies, springs and stabilizers, crankshafts and conrods, steering, and undercarriages. The Decarbon Technologies segment provides slewing bearings and rings, green ammonia and methanol, chemical and cement plants, high pressure processing, and refinery services, as well as green hydrogen. The Marine System segment manufactures submarines, naval services, and naval surface vessels. The Material Services segment offers 3D-printing/additive manufacturing, alloys, infrastructure project and services, industrial minerals, logistics services, metals, nonferrous metals, plastics, rolled steel, special ores, and stainless steel. The Steel Europe segment manufactures composite materials, electrical steel, hot strips, organic coated strips and sheet, packaging steel, precision steel strip, and sheet and coated products. thyssenkrupp AG was founded in 1811 and is headquartered in Essen, Germany.

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