Analyzing Worthington Steel (NYSE:WS) and General Steel (OTCMKTS:GSIH)

General Steel (OTCMKTS:GSIH) and Worthington Steel (NYSE:WS) are both small-cap basic materials companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, dividends, risk, valuation, earnings and institutional ownership.

Insider and Institutional Ownership

45.4% of Worthington Steel shares are owned by institutional investors. 53.3% of General Steel shares are owned by company insiders. Comparatively, 2.2% of Worthington Steel shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares General Steel and Worthington Steel”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
General Steel	N/A	N/A	N/A	N/A	N/A
Worthington Steel	$3.36 billion	0.52	$154.70 million	$2.85	11.96

Worthington Steel has higher revenue and earnings than General Steel.

Profitability

This table compares General Steel and Worthington Steel’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
General Steel	N/A	N/A	N/A
Worthington Steel	3.71%	12.14%	7.34%

Analyst Recommendations

This is a summary of current recommendations and price targets for General Steel and Worthington Steel, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
General Steel	0	0	0	0	0.00
Worthington Steel	0	1	1	0	2.50

Worthington Steel has a consensus price target of $40.00, indicating a potential upside of 17.30%. Given Worthington Steel’s stronger consensus rating and higher probable upside, analysts clearly believe Worthington Steel is more favorable than General Steel.

Summary

Worthington Steel beats General Steel on 8 of the 9 factors compared between the two stocks.

About General Steel

General Steel Holdings, Inc. engages in the business of cell research, development, storage, and cell culture service in the People's Republic of China. General Steel Holdings, Inc. was incorporated in 2002 and is headquartered in Beijing, the People's Republic of China.

About Worthington Steel

Worthington Steel, Inc. operates as a steel processor in North America. It offers carbon flat-rolled steel and tailor welded blanks, as well as electrical steel laminations; and aluminum tailor welded blanks. The company serves various end-markets, including automotive, heavy truck, agriculture, construction, and energy. Worthington Steel, Inc. was incorporated in 2023 and is based in Columbus, Ohio.