Dynamic Materials Corp. (NASDAQ: BOOM) and Nucor Corporation (NYSE:NUE) are both industrial products companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, earnings and institutional ownership.
This table compares Dynamic Materials Corp. and Nucor Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Dynamic Materials Corp.||-10.69%||-1.20%||-0.81%|
Dynamic Materials Corp. pays an annual dividend of $0.08 per share and has a dividend yield of 0.4%. Nucor Corporation pays an annual dividend of $1.51 per share and has a dividend yield of 2.8%. Dynamic Materials Corp. pays out -6.0% of its earnings in the form of a dividend. Nucor Corporation pays out 42.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Dynamic Materials Corp. has increased its dividend for 43 consecutive years.
Earnings and Valuation
This table compares Dynamic Materials Corp. and Nucor Corporation’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Dynamic Materials Corp.||$158.57 million||2.00||-$6.50 million||($1.33)||-16.13|
|Nucor Corporation||$16.21 billion||1.07||$796.27 million||$3.59||15.26|
Nucor Corporation has higher revenue and earnings than Dynamic Materials Corp.. Dynamic Materials Corp. is trading at a lower price-to-earnings ratio than Nucor Corporation, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Dynamic Materials Corp. has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.Comparatively, Nucor Corporation has a beta of 1.59, meaning that its stock price is 59% more volatile than the S&P 500.
Insider & Institutional Ownership
87.0% of Dynamic Materials Corp. shares are held by institutional investors. Comparatively, 74.9% of Nucor Corporation shares are held by institutional investors. 5.1% of Dynamic Materials Corp. shares are held by insiders. Comparatively, 0.7% of Nucor Corporation shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This is a summary of recent recommendations and price targets for Dynamic Materials Corp. and Nucor Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Dynamic Materials Corp.||0||0||1||0||3.00|
Dynamic Materials Corp. currently has a consensus target price of $22.00, suggesting a potential upside of 2.56%. Nucor Corporation has a consensus target price of $67.44, suggesting a potential upside of 23.06%. Given Nucor Corporation’s higher probable upside, analysts plainly believe Nucor Corporation is more favorable than Dynamic Materials Corp..
Nucor Corporation beats Dynamic Materials Corp. on 10 of the 16 factors compared between the two stocks.
About Dynamic Materials Corp.
DMC Global Inc., formerly Dynamic Materials Corporation, is a diversified technology company. The Company operates a family of technical product and process businesses serving the energy, industrial and infrastructure markets. The Company’s businesses operate through an international network of manufacturing, distribution and sales facilities. The Company’s segments are NobelClad and DynaEnergetics. The NobelClad segment is engaged in the production of explosion-welded clad metal plates for use in the construction of corrosion resistant industrial processing equipment and specialized transition joints. The DynaEnergetics segment manufactures, markets and sells oilfield perforating equipment and explosives, including detonating cords, detonators, bi-directional boosters and shaped charges, and seismic related explosives and accessories. It owns explosive metalworking and metallic processes, and registered trademarks, including Detaclad, Detacouple, EFTEK, ETJ 2000 and NOBELCLAD.
About Nucor Corporation
Nucor Corporation (Nucor) manufactures steel and steel products. The Company produces direct reduced iron (DRI) for use in its steel mills. It operates in three segments: steel mills, steel products and raw materials. The steel mills segment produces and distributes sheet steel (hot-rolled, cold-rolled and galvanized), plate steel, structural steel (wide-flange beams, beam blanks, H-piling and sheet piling) and bar steel (blooms, billets, concrete reinforcing bar, merchant bar, wire rod and special bar quality). The steel products segment produces steel joists and joist girders, steel deck, fabricated concrete reinforcing steel and cold finished steel. The raw materials produces DRI; brokers ferrous and nonferrous metals, pig iron, HBI and DRI; supplies ferro-alloys, and processes ferrous and nonferrous scrap metal. It also processes ferrous and nonferrous metals and brokers ferrous and nonferrous metals, pig iron, hot briquetted iron (HBI) and DRI.
Receive News & Ratings for Dynamic Materials Corp. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Dynamic Materials Corp. and related companies with MarketBeat.com's FREE daily email newsletter.