Critical Contrast: Russel Metals (RUSMF) and Its Rivals

Russel Metals (OTCMKTS:RUSMF – Get Free Report) is one of 159 publicly-traded companies in the “Trading Companies & Distributors” industry, but how does it compare to its rivals? We will compare Russel Metals to related companies based on the strength of its dividends, analyst recommendations, institutional ownership, profitability, earnings, valuation and risk.

Dividends

Russel Metals pays an annual dividend of $1.43 per share and has a dividend yield of 2.5%. Russel Metals pays out 82.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Trading Companies & Distributors” companies pay a dividend yield of 2.9% and pay out 36.5% of their earnings in the form of a dividend. Russel Metals lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Russel Metals and its rivals, as reported by MarketBeat.

As a group, “Trading Companies & Distributors” companies have a potential upside of 5.15%. Given Russel Metals’ rivals higher probable upside, analysts clearly believe Russel Metals has less favorable growth aspects than its rivals.

Institutional and Insider Ownership

42.7% of Russel Metals shares are owned by institutional investors. Comparatively, 50.9% of shares of all “Trading Companies & Distributors” companies are owned by institutional investors. 16.7% of shares of all “Trading Companies & Distributors” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Russel Metals and its rivals’ net margins, return on equity and return on assets.

Earnings and Valuation

This table compares Russel Metals and its rivals revenue, earnings per share and valuation.

Russel Metals’ rivals have higher revenue and earnings than Russel Metals. Russel Metals is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

Russel Metals rivals beat Russel Metals on 9 of the 13 factors compared.

About Russel Metals

(Get Free Report)

Russel Metals Inc. operates as a metal distribution and processing company in Canada and the United States. It operates in three segments: Metals Service Centers, Energy Field Stores, and Steel Distribution. The Metal Service Centers segment operates a network of metals service centers, which provide metal products in range of sizes, shapes, and specifications, including carbon hot rolled and cold finished steel, pipe and tubular, stainless steel, aluminum, and other non-ferrous specialty metal products. The Energy Field Stores segment offers specialized products, such as flanges, valves, fittings, and other products to energy industry. The Steel Distributors segment sells steel products to other steel service centers and equipment manufacturers, which include carbon steel plate, flat rolled products, beams, channels, and pipes. Russel Metals Inc. was incorporated in 1929 and is headquartered in Mississauga, Canada.