Critical Comparison: NIPPON Stl & SU/S (OTCMKTS:NSSMY) vs. Lincoln Electric (LECO)
Lincoln Electric (NASDAQ:LECO) and NIPPON Stl & SU/S (OTCMKTS:NSSMY) are both industrial products companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitability, earnings, analyst recommendations, valuation and risk.
Lincoln Electric pays an annual dividend of $1.56 per share and has a dividend yield of 1.9%. NIPPON Stl & SU/S pays an annual dividend of $0.28 per share and has a dividend yield of 1.4%. Lincoln Electric pays out 41.2% of its earnings in the form of a dividend. Lincoln Electric has raised its dividend for 14 consecutive years. Lincoln Electric is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
70.3% of Lincoln Electric shares are held by institutional investors. Comparatively, 0.0% of NIPPON Stl & SU/S shares are held by institutional investors. 3.0% of Lincoln Electric shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Lincoln Electric and NIPPON Stl & SU/S’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Lincoln Electric||$2.62 billion||2.08||$247.50 million||$3.79||22.06|
|NIPPON Stl & SU/S||$51.19 billion||0.36||$1.76 billion||N/A||N/A|
NIPPON Stl & SU/S has higher revenue and earnings than Lincoln Electric.
This table compares Lincoln Electric and NIPPON Stl & SU/S’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|NIPPON Stl & SU/S||3.84%||6.25%||2.88%|
Risk and Volatility
Lincoln Electric has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500. Comparatively, NIPPON Stl & SU/S has a beta of 1.35, suggesting that its stock price is 35% more volatile than the S&P 500.
This is a breakdown of current ratings and recommmendations for Lincoln Electric and NIPPON Stl & SU/S, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|NIPPON Stl & SU/S||0||0||0||0||N/A|
Lincoln Electric presently has a consensus price target of $105.71, suggesting a potential upside of 26.42%. Given Lincoln Electric’s higher probable upside, equities analysts clearly believe Lincoln Electric is more favorable than NIPPON Stl & SU/S.
Lincoln Electric beats NIPPON Stl & SU/S on 11 of the 15 factors compared between the two stocks.
Lincoln Electric Company Profile
Lincoln Electric Holdings, Inc., through its subsidiaries, designs, manufactures, and sells welding, cutting, and brazing products worldwide. It operates through three segments: Americas Welding, International Welding, and The Harris Products Group. The company's welding products include arc welding power sources, plasma cutters, wire feeding systems, robotic welding packages, integrated automation systems, fume extraction equipment, consumable electrodes, fluxes and welding accessories, and specialty welding consumables and fabrication products. It also provides computer numeric controlled plasma and oxy-fuel cutting systems, and regulators and torches used in oxy-fuel welding, cutting, and brazing; and consumables used in the brazing and soldering alloys market. In addition, the company is involved in the retail business in the United States. It serves general fabrication, energy and process, automotive and transportation, heavy fabrication, and construction and infrastructure industries, as well as ship building and maintenance and repair markets. The company sells its products directly to users of welding products, as well as through industrial distributors, retailers, and agents. Lincoln Electric Holdings, Inc. was founded in 1895 and is headquartered in Cleveland, Ohio.
NIPPON Stl & SU/S Company Profile
Nippon Steel & Sumitomo Metal Corporation engages in steelmaking and steel fabrication businesses worldwide. It operates in five segments: Steelmaking and Steel Fabrication, Engineering and Construction, Chemicals, New materials, and System Solutions. The company offers steel plates; hot- and cold-rolled steel sheets and coils, coated steel sheets, color coated steel sheets, electrolytic tin plates, and electrical steel sheets; bar and rod materials; and structural steel products. It also provides pipes and tubes; and railway, automotive, and construction and industrial machinery parts, such as railway wheels, driving mechanisms, axles, couplers, bogie trucks, brake disks, control bogies, brake calipers, test equipment, crankshafts and front axles, aluminum wheels, permanent magnet retarders, die materials, mill rolls, circular forgings, forged products for power generation, and shape-memory alloys. In addition, the company offers titanium products for use in automobiles, architecture, civil engineering and ocean development, aircraft, sports gears and consumer products, welded tubes, PHE, and chemical and electrolytic fields; stainless steel sheets, shapes, plates, and wire rods, as well as strips, clad steel sheets, nickel and nickel alloy products, and crystal series products; and steel slags. Further, it manufactures and markets industrial machinery and equipment; performs construction work under contract; and engages in waste processing and recycling activities, as well as in supplying electricity, gas, and heat. Additionally, the company offers coal-based chemical products and petrochemicals, as well as electronic materials; and materials for semiconductors and electronic parts, carbon fiber and composite products, and products that apply technologies for metal processing. It also provides computer systems engineering and consulting services; and IT-enabled outsourcing and other services. The company was founded in 1949 and is headquartered in Tokyo, Japan.
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