Contrasting Voestalpine (OTCMKTS:VLPNY) & Outokumpu Oyj (OTCMKTS:OUTKY)

Outokumpu Oyj (OTCMKTS:OUTKY) and Voestalpine (OTCMKTS:VLPNY) are both mid-cap basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, earnings, analyst recommendations, institutional ownership and valuation.

Analyst Ratings

This is a summary of current ratings and price targets for Outokumpu Oyj and Voestalpine, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Outokumpu Oyj 2 0 7 0 2.56
Voestalpine 4 4 1 0 1.67

Profitability

This table compares Outokumpu Oyj and Voestalpine’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Outokumpu Oyj -1.68% -3.75% -1.59%
Voestalpine -5.27% -10.77% -4.00%

Risk & Volatility

Outokumpu Oyj has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500. Comparatively, Voestalpine has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500.

Valuation & Earnings

This table compares Outokumpu Oyj and Voestalpine’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Outokumpu Oyj $7.17 billion 0.35 -$84.00 million ($0.10) -30.65
Voestalpine $14.14 billion 0.56 -$232.14 million ($0.28) -31.45

Outokumpu Oyj has higher earnings, but lower revenue than Voestalpine. Voestalpine is trading at a lower price-to-earnings ratio than Outokumpu Oyj, indicating that it is currently the more affordable of the two stocks.

Summary

Outokumpu Oyj beats Voestalpine on 7 of the 11 factors compared between the two stocks.

Outokumpu Oyj Company Profile

Outokumpu Oyj produces and sells various stainless steel products in Finland, other European countries, North America, the Asia-Pacific, and internationally. It offers cold rolled coils, strips, and sheets; precision strips; hot rolled coils, strips, and plates; quarto plates; semi-finished stainless steel long products; stainless steel wire rods, drawn wire, bars, and rebars; welded stainless steel I-beams, H-beams, hollow-section tubes, and bent profiles for load-bearing structures; suction roll shell blanks; blancs and discs; and customized press plates and ready-to-use plates. The company also provides various grades of ferrochrome; and by-products, such as OKTO insulation and aggregates, and croval. Its products are used in various applications, including commercial kitchen, cooking, food industry, and home appliances; automotive and transportation; building and infrastructure; and energy and heavy industries. Outokumpu Oyj was founded in 1910 and is headquartered in Helsinki, Finland.

Voestalpine Company Profile

Voestalpine AG processes, develops, manufactures, and sells steel products worldwide. The company operates through five segments: Steel, High Performance Metals, Metal Engineering, Metal Forming, and Other. The Steel division produces hot and cold-rolled steel strips, as well as electrogalvanized, hot-dip galvanized, and organically coated steel strips; and heavy plates for the energy sector, as well as turbine casings for automotive, white goods/consumer goods, building/construction, energy, mechanical engineering, and others. The High Performance Metals segment offers special alloys for the oil and natural gas, aerospace, and energy engineering industries; tool manufacturing, heat treatment, and coating services; and warehousing and preprocessing of special steels, as well as services, including logistics, distribution, and processing for the oil and natural gas industries for automotive, white goods/consumer goods, building/construction, aerospace, mechanical engineering, and others. The Metal Engineering division offers rails and turnout products, rod and drawn wires, seamless tubes, and welding consumables and machinery; track-based monitoring systems for various railway applications; and services for rail infrastructure. This segment serves railway systems, automotive, white goods/consumer goods, building/construction, energy, mechanical engineering, and others. The Metal Forming division manufactures special tubes and sections, and precision strip steel products, as well as pre-finished system components made from pressed, punched, and roll-profiled parts for use in automotive, white goods/consumer goods, building/construction, energy, mechanical engineering, and others. It also provides cold-rolled precision strip steel. The company is headquartered in Linz, Austria.

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