U.S. Steel’s performance versus its peers
We have seen that U.S. Steel Corp. (X) supplies its steel to all major steel consumers. It competes with companies like ArcelorMittal (MT), Nucor Corporation (NUE), and Reliance Steel & Aluminum (RS) to get a portion of the competitive market.
Where U.S. Steel is placed versus its peers
In this section we’ll compare U.S. Steel with its U.S. based peers. There are various metrics, each with its own merits, to compare companies. We’ll analyze the earnings before interest, taxes, depreciation, amortization (or EBITDA) margins and return on assets (or ROA). The reasoning is based on the basic structure of the steel industry, which is asset heavy and cyclical in nature.
Along with the steel companies we discussed, there are also exchange-traded funds (or ETFs) like the SPDR S&P Metals and Mining ETF (XME) which invest in U.S. based steel makers.
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