Contrasting Russel Metals (RUSMF) & Its Peers

by · The Markets Daily

Russel Metals (OTCMKTS:RUSMFGet Free Report) is one of 158 publicly-traded companies in the “Trading Companies & Distributors” industry, but how does it compare to its competitors? We will compare Russel Metals to related companies based on the strength of its risk, earnings, valuation, profitability, dividends, analyst recommendations and institutional ownership.

Profitability

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

Net MarginsReturn on EquityReturn on Assets
Russel MetalsN/AN/AN/A
Russel Metals Competitors0.68%-34.57%3.12%

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. 17.1% of shares of all “Trading Companies & Distributors” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

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 36.6% of their earnings in the form of a dividend. Russel Metals lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Earnings & Valuation

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

Gross RevenueNet IncomePrice/Earnings Ratio
Russel MetalsN/AN/A33.36
Russel Metals Competitors$6.49 billion$363.90 million25.17

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Russel Metals and its competitors, as provided by MarketBeat.

Sell RatingsHold RatingsBuy RatingsStrong Buy RatingsRating Score
Russel Metals02302.60
Russel Metals Competitors1407485466432172.43

As a group, “Trading Companies & Distributors” companies have a potential upside of 4.68%. Given Russel Metals’ competitors higher possible upside, analysts plainly believe Russel Metals has less favorable growth aspects than its competitors.

Summary

Russel Metals competitors 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.