AK Steel (AKS) vs. Its Peers Head-To-Head Contrast

AK Steel (NYSE: AKS) is one of 22 publicly-traded companies in the “Blast furnaces & steel mills” industry, but how does it contrast to its peers? We will compare AK Steel to related companies based on the strength of its institutional ownership, dividends, analyst recommendations, risk, profitability, valuation and earnings.

Profitability

This table compares AK Steel and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AK Steel 0.16% 71.24% 2.64%
AK Steel Competitors 4.25% 10.75% 3.42%



Risk and Volatility

AK Steel has a beta of 2.89, indicating that its stock price is 189% more volatile than the S&P 500. Comparatively, AK Steel’s peers have a beta of 1.38, indicating that their average stock price is 38% more volatile than the S&P 500.

Institutional and Insider Ownership

67.8% of AK Steel shares are held by institutional investors. Comparatively, 65.2% of shares of all “Blast furnaces & steel mills” companies are held by institutional investors. 0.8% of AK Steel shares are held by company insiders. Comparatively, 4.0% of shares of all “Blast furnaces & steel mills” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares AK Steel and its peers gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
AK Steel $6.08 billion $6.19 million 14.10
AK Steel Competitors $12.33 billion $652.37 million 16.06

AK Steel’s peers have higher revenue and earnings than AK Steel. AK Steel is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a summary of current recommendations and price targets for AK Steel and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AK Steel 1 9 5 0 2.27
AK Steel Competitors 306 903 1077 53 2.37

AK Steel presently has a consensus price target of $6.61, suggesting a potential upside of 51.19%. As a group, “Blast furnaces & steel mills” companies have a potential upside of 14.27%. Given AK Steel’s higher possible upside, equities research analysts plainly believe AK Steel is more favorable than its peers.

Summary

AK Steel peers beat AK Steel on 9 of the 13 factors compared.

About AK Steel

AK Steel Holding Corporation is a producer of flat-rolled carbon, stainless and electrical steels, and tubular products through its subsidiary, AK Steel Corporation (AK Steel). The Company also operates blast furnaces and electric arc furnaces. As of December 31, 2016, its operations included eight steelmaking and finishing plants, two coke plants and two tube manufacturing plants across states, including Indiana, Kentucky, Michigan, Ohio, Pennsylvania and West Virginia, and a tube manufacturing plant in Mexico. These operations produce flat-rolled carbon, specialty stainless and electrical steels that it sells in sheet and strip form, and carbon and stainless steel that it finishes into welded steel tubing. It also produces metallurgical coal through its subsidiary, AK Coal Resources, Inc. In addition, the Company operates trading companies in Mexico and Europe that buy and sell steel and steel products and other materials.

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