Nucor Corporation (NUE) vs Steel Dynamics, Inc. (STLD)

Nucor Corporation and Steel Dynamics, Inc. are both Steel companies. Nucor Corporation is the larger, with a market value of $55.9B against $33.7B — 1.7× the size. Nucor Corporation trades at the lower P/E: 19.7× against 21.1×. Steel Dynamics, Inc. grew revenue faster over the last twelve months: 19.8% against 17.2%. Nucor Corporation has the higher net margin (7.96% vs 7.83%) and the lower return on invested capital (9.41% vs 10.0%). Both pay a dividend; Steel Dynamics, Inc. yields more (1.44% vs 1.15%). Across the 23 metrics below, Nucor Corporation leads on 15 and Steel Dynamics, Inc. on 8.

Valuation

Metric NUE STLD Steel median
P/E 19.70 21.10 21.10
P/S 1.56 1.64 0.70
P/B 2.43 3.65 1.39
Price to free cash flow 35.05 35.24 23.71
EV/EBITDA 10.71 13.94 10.71
EV/Sales 1.69 1.82 0.85
Earnings yield 5.08% 4.74% 4.56%
Free cash flow yield 2.85% 2.84% 0.00%

Profitability

Metric NUE STLD Steel median
Gross margin 15.47% 14.65% 13.91%
Operating margin 11.55% 10.01% 4.77%
Net margin 7.96% 7.83% 3.40%
Free cash flow margin 4.46% 4.65% 0.00%
Return on equity 12.84% 17.94% 2.21%
Return on assets 8.07% 9.84% 1.83%
Return on invested capital 9.41% 10.01% 2.52%

Growth

Metric NUE STLD Steel median
Revenue growth (TTM) 17.19% 19.77% 11.33%
EPS growth (last fiscal year) (11.11%) (18.80%) —
Revenue growth, 5-year CAGR 10.04% 13.61% 6.73%
Net income growth, 5-year CAGR 19.36% 16.57% 0.00%

Health

Metric NUE STLD Steel median
Debt to equity 0.31 0.45 0.22
Current ratio 2.51 3.18 2.58
Net debt to EBITDA 1.07 1.70 0.10

Dividend

Metric NUE STLD Steel median
Dividend yield 1.15% 1.44% 2.48%
Payout ratio 0.09 0.09 0.04

Size

Metric NUE STLD Steel median
Market cap 55.94b 33.71b 1.46b

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