Hawkins vs United States Steel Which Is a Better Investment?

In 1935, the landmark Supreme Court case Hawkins v. United States Steel Corp. set a precedent for labor rights and collective bargaining in the United States. The case centered around employees at a steel plant who were fired for trying to organize a union. The Supreme Court ruled in favor of the workers, establishing the right of employees to engage in collective bargaining and protected their freedom of association. This decision had far-reaching implications for labor rights and paved the way for future advancements in workers' rights.

Hawkins or United States Steel?

When comparing Hawkins and United States Steel, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Hawkins and United States Steel.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Hawkins has a dividend yield of 0.52%, while United States Steel has a dividend yield of 0.62%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Hawkins reports a 5-year dividend growth of -6.97% year and a payout ratio of 16.92%. On the other hand, United States Steel reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Hawkins P/E ratio at 32.05 and United States Steel's P/E ratio at 23.05. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Hawkins P/B ratio is 5.91 while United States Steel's P/B ratio is 0.69.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Hawkins has seen a 5-year revenue growth of 0.89%, while United States Steel's is -0.11%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Hawkins's ROE at 19.64% and United States Steel's ROE at 3.37%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $124.15 for Hawkins and $40.20 for United States Steel. Over the past year, Hawkins's prices ranged from $54.44 to $135.61, with a yearly change of 149.10%. United States Steel's prices fluctuated between $26.92 and $50.20, with a yearly change of 86.48%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.