Head to Head Review: Timkensteel (TMST) versus Its Peers

Timkensteel (NYSE: TMST) is one of 61 public companies in the “STEEL” industry, but how does it compare to its peers? We will compare Timkensteel to related businesses based on the strength of its risk, dividends, institutional ownership, valuation, profitability, analyst recommendations and earnings.

Profitability

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

Net Margins Return on Equity Return on Assets
Timkensteel -3.33% -7.56% -3.86%
Timkensteel Competitors -546.22% 10.40% 6.32%

Institutional & Insider Ownership

75.0% of Timkensteel shares are held by institutional investors. Comparatively, 52.9% of shares of all “STEEL” companies are held by institutional investors. 8.1% of Timkensteel shares are held by insiders. Comparatively, 11.3% of shares of all “STEEL” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Timkensteel and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Timkensteel $1.33 billion -$43.80 million -15.66
Timkensteel Competitors $9.96 billion $425.72 million -6.21

Timkensteel’s peers have higher revenue and earnings than Timkensteel. Timkensteel 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.

Risk & Volatility

Timkensteel has a beta of 2.05, suggesting that its stock price is 105% more volatile than the S&P 500. Comparatively, Timkensteel’s peers have a beta of 1.72, suggesting that their average stock price is 72% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Timkensteel and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Timkensteel 0 3 2 0 2.40
Timkensteel Competitors 438 1404 1487 70 2.35

Timkensteel presently has a consensus target price of $19.25, indicating a potential upside of 24.19%. As a group, “STEEL” companies have a potential upside of 14.10%. Given Timkensteel’s stronger consensus rating and higher possible upside, analysts plainly believe Timkensteel is more favorable than its peers.

Summary

Timkensteel peers beat Timkensteel on 8 of the 13 factors compared.

Timkensteel Company Profile

TimkenSteel Corporation manufactures alloy steel, as well as carbon and micro-alloy steel. The Company’s portfolio includes special bar quality (SBQ) bars, seamless mechanical tubing and precision steel components. In addition, the Company supplies machining and thermal treatment services, as well as manage raw material recycling programs, which are used as a feeder system for its melt operations. The Company’s products include SBQ Steel and Seamless Mechanical Steel Tubing, and Value-added Precision Products and Services. Its focus is on alloy steel. The Company manufactures carbon, micro-alloy and alloy steel, sold as ingots, bars and tubes. In addition to its customized steels, the Company also manufactures custom-make precision components. Its products and services are used in a range of demanding applications in the market sectors, such as oil and gas, industrial equipment, mining and power generation.

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