Synalloy Corporation (NASDAQ: SYNL) and Carpenter Technology Corporation (NYSE:CRS) are both industrial products companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, earnings, dividends, risk and valuation.
Earnings and Valuation
This table compares Synalloy Corporation and Carpenter Technology Corporation’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Synalloy Corporation||$161.06 million||0.64||$7.35 million||($0.29)||-40.52|
|Carpenter Technology Corporation||$1.80 billion||1.16||$213.50 million||$1.00||44.74|
Carpenter Technology Corporation has higher revenue and earnings than Synalloy Corporation. Synalloy Corporation is trading at a lower price-to-earnings ratio than Carpenter Technology Corporation, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Synalloy Corporation has a beta of 0.14, meaning that its share price is 86% less volatile than the S&P 500. Comparatively, Carpenter Technology Corporation has a beta of 2.09, meaning that its share price is 109% more volatile than the S&P 500.
Carpenter Technology Corporation pays an annual dividend of $0.72 per share and has a dividend yield of 1.6%. Synalloy Corporation does not pay a dividend. Carpenter Technology Corporation pays out 72.0% of its earnings in the form of a dividend.
Insider & Institutional Ownership
47.6% of Synalloy Corporation shares are held by institutional investors. Comparatively, 92.8% of Carpenter Technology Corporation shares are held by institutional investors. 10.6% of Synalloy Corporation shares are held by insiders. Comparatively, 3.6% of Carpenter Technology Corporation shares are held 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.
This is a breakdown of recent ratings for Synalloy Corporation and Carpenter Technology Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Carpenter Technology Corporation||0||2||3||0||2.60|
Carpenter Technology Corporation has a consensus price target of $43.40, suggesting a potential downside of 3.00%. Given Carpenter Technology Corporation’s higher probable upside, analysts plainly believe Carpenter Technology Corporation is more favorable than Synalloy Corporation.
This table compares Synalloy Corporation and Carpenter Technology Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Carpenter Technology Corporation||2.61%||4.48%||1.83%|
Carpenter Technology Corporation beats Synalloy Corporation on 12 of the 14 factors compared between the two stocks.
About Synalloy Corporation
Synalloy Corporation is a chemical manufacturing company. The Company operates through two segments: the Metals Segment and the Specialty Chemicals Segment. The Company’s Metals Segment comprises three subsidiaries: Synalloy Metals, Inc., which owns Bristol Metals, LLC (BRISMET), located in Bristol, Tennessee; Palmer of Texas Tanks, Inc. (Palmer), located in Andrews, Texas; and Specialty Pipe & Tube, Inc. (Specialty), located in Mineral Ridge, Ohio and Houston, Texas. The Company’s Metals Segment manufactures stainless steel, other alloy pipe, storage solutions and separation equipment. The Company’s Specialty Chemicals segment consists of the Company’s subsidiary, Manufacturers Soap and Chemical Company (MS&C). The Specialty Chemicals Segment manufactures lubricants, surfactants, reaction intermediaries, sulfated fats and oils, and chemical tolling manufacturing resources.
About Carpenter Technology Corporation
Carpenter Technology Corporation is engaged in the manufacturing, fabrication and distribution of specialty metals. The Company’s segments include Specialty Alloys Operations (SAO) and Performance Engineered Products (PEP). Its SAO segment consists of alloy and stainless steel manufacturing operations. Its PEP segment includes the Dynamet titanium business, the Carpenter Powder Products business, the Amega West business, the Specialty Steel Supply business and the Latrobe and Mexico distribution businesses. It develops, manufactures and distributes cast/wrought and powder metal stainless steels, and special alloys, including high temperature (iron-nickel-cobalt base), stainless, corrosion resistant, controlled expansion alloys, ultra-high strength and implantable alloys, tool and die steels and other specialty metals, as well as cast/wrought titanium alloys. The Company manufactures and rents down-hole drilling tools and components used in the oil and gas industry.
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