Mesabi Trust (MSB) vs Worthington Steel, Inc. (WS)

Mesabi Trust and Worthington Steel, Inc. are both Steel companies. Worthington Steel, Inc. is the larger, with a market value of $1.8B against $216.4M — 8.5× the size. Worthington Steel, Inc. has negative trailing earnings, so its P/E is not meaningful; Mesabi Trust trades at 35.1×. Worthington Steel, Inc. grew revenue faster over the last twelve months: 69.1% against −87.6%. Mesabi Trust has the higher net margin (54.5% vs −0.72%) and the higher return on invested capital (3,629.0% vs 0.11%). Both pay a dividend; Mesabi Trust yields more (3.18% vs 1.74%). Across the 20 metrics below, Mesabi Trust leads on 14 and Worthington Steel, Inc. on 6.

Valuation

Metric MSB WS Steel median
P/E 35.15 n/m 16.37
P/S 19.08 0.35 0.70
P/B 12.92 1.12 1.11
Price to free cash flow 26.03 22.44 22.44
EV/EBITDA 17.62 38.80 8.45
EV/Sales 17.62 0.72 0.79
Earnings yield 2.85% (2.07%) 5.01%
Free cash flow yield 3.84% 4.46% 0.00%

Profitability

Metric MSB WS Steel median
Gross margin 100.00% 10.37% 13.96%
Operating margin 73.89% 0.12% 6.93%
Net margin 54.47% (0.72%) 3.14%
Free cash flow margin 73.32% 1.55% 0.00%
Return on equity 32.13% (2.67%) 3.23%
Return on assets 29.07% (0.93%) 1.83%
Return on invested capital 3,628.96% 0.11% 3.18%

Growth

Metric MSB WS Steel median
Revenue growth (TTM) (87.62%) 69.13% 15.40%
EPS growth (last fiscal year) (85.09%) (92.24%) (18.80%)
Revenue growth, 5-year CAGR (7.55%) — 7.46%
Net income growth, 5-year CAGR (9.94%) — 0.00%

Health

Metric MSB WS Steel median
Debt to equity 0.00 1.35 0.25
Current ratio 8.81 1.81 2.56
Net debt to EBITDA (1.61) 2.15 0.10

Dividend

Metric MSB WS Steel median
Dividend yield 3.18% 1.74% 1.19%
Payout ratio 1.12 1.81 0.36

Size

Metric MSB WS Steel median
Market cap 216.35m 1.84b 1.84b

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