Schnitzer Steel Industries Inc. (SCHN)’s Financial Results Comparing With Synalloy Corporation (NASDAQ:SYNL)

As Steel & Iron companies, Schnitzer Steel Industries Inc. (NASDAQ:SCHN) and Synalloy Corporation (NASDAQ:SYNL) are our subject to contrast. And more specifically their institutional ownership, earnings and valuation, profitability, risk, dividends, analyst recommendations.

Valuation & Earnings

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Schnitzer Steel Industries Inc. 2.45B 0.26 153.97M 4.16 6.31
Synalloy Corporation 261.00M 0.50 13.56M 1.49 10.59

Table 1 shows top-line revenue, earnings per share and valuation of the two companies. Synalloy Corporation appears to has lower revenue and earnings than Schnitzer Steel Industries Inc. The business that is more affordable between the two has a lower price-to-earnings ratio. Schnitzer Steel Industries Inc. is trading at a lower price-to-earnings ratio than Synalloy Corporation, indicating that it is presently more affordable of the two stocks.

Profitability

Table 2 has Schnitzer Steel Industries Inc. and Synalloy Corporation’s return on equity, return on assets and net margins.

Net Margins Return on Equity Return on Assets
Schnitzer Steel Industries Inc. 6.28% 26% 14.8%
Synalloy Corporation 5.20% 14.2% 7%

Risk & Volatility

Schnitzer Steel Industries Inc. has a beta of 1.11 and its 11.00% more volatile than Standard & Poor’s 500. Synalloy Corporation’s 0.43 beta is the reason why it is 57.00% less volatile than Standard & Poor’s 500.

Liquidity

The Current Ratio and a Quick Ratio of Schnitzer Steel Industries Inc. are 1.8 and 1. Competitively, Synalloy Corporation has 2.9 and 1 for Current and Quick Ratio. Synalloy Corporation’s better ability to pay short and long-term obligations than Schnitzer Steel Industries Inc.

Dividends

Schnitzer Steel Industries Inc. pays out $0.75 per share annually while its annual dividend yield is 3.11%. Meanwhile, Synalloy Corporation’s annual dividend is $0.38 per share and it also boasts of a 2.71% dividend yield.

Analyst Ratings

The next table highlights the delivered recommendations and ratings for Schnitzer Steel Industries Inc. and Synalloy Corporation.

Sell Ratings Hold Ratings Buy Ratings Rating Score
Schnitzer Steel Industries Inc. 1 3 0 2.75
Synalloy Corporation 0 0 0 0.00

Schnitzer Steel Industries Inc.’s average target price is $26.25, while its potential upside is 8.88%.

Insider and Institutional Ownership

Institutional investors owned 94.2% of Schnitzer Steel Industries Inc. shares and 66.5% of Synalloy Corporation shares. Schnitzer Steel Industries Inc.’s share owned by insiders are 5.7%. Comparatively, insiders own roughly 3.2% of Synalloy Corporation’s shares.

Performance

Here are the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of both pretenders.

Performance (W) Performance (M) Performance (Q) Performance (HY) Performance (Y) Performance (YTD)
Schnitzer Steel Industries Inc. -6.21% -6.58% 0.27% -20.39% -8.94% -21.58%
Synalloy Corporation -2.23% -10.66% -31.22% -20.65% 25% 17.54%

For the past year Schnitzer Steel Industries Inc. has -21.58% weaker performance while Synalloy Corporation has 17.54% stronger performance.

Summary

On 12 of the 16 factors Schnitzer Steel Industries Inc. beats Synalloy Corporation.

Schnitzer Steel Industries, Inc. recycles ferrous and nonferrous scrap metals; and manufactures finished steel products worldwide. It operates through two segments, Auto and Metals Recycling (AMR) and Steel Manufacturing Business (SMB). The AMR segment buys, collects, processes, recycles, sells, and brokers scrap metals, as well as processes mixed and large pieces of scrap metal into smaller pieces by crushing, torching, shearing, shredding, and sorting. This segment offers ferrous scrap metal, a feedstock used in the production of finished steel products; and nonferrous products, including aluminum, copper, stainless steel, nickel, brass, titanium, lead, high temperature alloys, and joint products. It sells ferrous and nonferrous recycled metal products to steel mills, foundries, and smelters. This segment also procures salvaged vehicles and sells serviceable used auto parts from these vehicles through its 52 self-service auto parts stores in the United States and Western Canada, as well as sells auto bodies and parts containing ferrous and nonferrous materials, such as engines, transmissions, and alternators to wholesalers. The SMB segment produces various finished steel products using recycled metal and other raw materials. It offers semi-finished goods, which include billets; and finished goods consisting of rebar, coiled rebar, wire rods, merchant bars, and other specialty products. This segment serves steel service centers, construction industry subcontractors, steel fabricators, wire drawers, and farm and wood products suppliers. Schnitzer Steel Industries, Inc. was founded in 1906 and is headquartered in Portland, Oregon.

Synalloy Corporation engages in production and sale of stainless steel pipes, fiberglass, steel storage tanks, and specialty chemicals in the United States and internationally. The company operates in two segments, Metals and Specialty Chemicals. The Metals segment manufactures and sells stainless steel and other alloy pipes under the BRISMET trade name through authorized stocking distributors; and liquid storage solutions and separation equipment, as well as distributes seamless carbon pipes and tubes. Its products are used by oil and gas, chemical, petrochemical, pulp and paper, mining, power generation, water and waste water treatment, liquid natural gas, brewery, food processing, petroleum, pharmaceutical, and other industries. The Specialty Chemicals segment produces specialty chemicals, including lubricants, surfactants, defoamers, reaction intermediaries, and sulfated fats and oils for the carpet, chemical, paper, metals, mining, agricultural, fiber, paint, textile, automotive, petroleum, cosmetics, mattress, furniture, janitorial, and other industries. This segment also provides chemical tolling manufacturing resources to global and regional chemical companies; and contracts with other chemical companies to manufacture certain pre-defined products. The company was formerly known as Blackman Uhler Industries, Inc. and changed its name to Synalloy Corporation in July 1967. Synalloy Corporation was founded in 1945 and is headquartered in Richmond, Virginia.