Russel Metals (RUSMF) and Its Peers Financial Comparison

Russel Metals (OTCMKTS:RUSMF) is one of 158 public companies in the “Trading Companies & Distributors” industry, but how does it weigh in compared to its peers? We will compare Russel Metals to similar businesses based on the strength of its earnings, dividends, analyst recommendations, risk, profitability, valuation and institutional ownership.

Valuation and Earnings

This table compares Russel Metals and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Russel Metals	N/A	N/A	30.76
Russel Metals Competitors	$6.50 billion	$365.60 million	21.23

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

Dividends

Russel Metals pays an annual dividend of $1.43 per share and has a dividend yield of 2.7%. 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 peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Russel Metals	N/A	N/A	N/A
Russel Metals Competitors	0.71%	-34.49%	3.15%

Insider & Institutional 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. 16.9% of shares of all “Trading Companies & Distributors” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations for Russel Metals and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Russel Metals	0	2	3	0	2.60
Russel Metals Competitors	1416	4866	6657	220	2.43

As a group, “Trading Companies & Distributors” companies have a potential upside of 11.02%. Given Russel Metals’ peers higher possible upside, analysts clearly believe Russel Metals has less favorable growth aspects than its peers.

Summary

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

Russel Metals Company Profile

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.