Financial Contrast: Synalloy Corporation (SYNL) versus SunCoke Energy (SXC)

Synalloy Corporation (NASDAQ: SYNL) and SunCoke Energy (NYSE:SXC) are both small-cap industrial products companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, profitability, dividends, valuation, analyst recommendations and institutional ownership.

Earnings and Valuation

This table compares Synalloy Corporation and SunCoke Energy’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 0.74 $7.35 million ($0.29) -47.24
SunCoke Energy $1.25 billion 0.48 $226.00 million N/A N/A

SunCoke Energy has higher revenue and earnings than Synalloy Corporation.

Profitability

This table compares Synalloy Corporation and SunCoke Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Synalloy Corporation -1.54% 0.64% 0.38%
SunCoke Energy -0.01% 3.27% 0.90%

Institutional and Insider Ownership

47.6% of Synalloy Corporation shares are owned by institutional investors. Comparatively, 90.2% of SunCoke Energy shares are owned by institutional investors. 10.6% of Synalloy Corporation shares are owned by company insiders. Comparatively, 3.9% of SunCoke Energy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Synalloy Corporation has a beta of 0.14, indicating that its stock price is 86% less volatile than the S&P 500. Comparatively, SunCoke Energy has a beta of 1.23, indicating that its stock price is 23% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Synalloy Corporation and SunCoke Energy, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Synalloy Corporation 0 0 0 0 N/A
SunCoke Energy 0 0 1 0 3.00

SunCoke Energy has a consensus price target of $11.00, suggesting a potential upside of 17.27%. Given SunCoke Energy’s higher probable upside, analysts clearly believe SunCoke Energy is more favorable than Synalloy Corporation.

Summary

SunCoke Energy beats Synalloy Corporation on 9 of the 12 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 SunCoke Energy

SunCoke Energy, Inc. is a producer of coke in the Americas. The Company’s segments include Domestic Coke, Brazil Coke, Coal Logistics, and Corporate and Other. The Domestic Coke segment consists of its Jewell Coke Company, L.P. (Jewell), Indiana Harbor Coke Company (Indiana Harbor), Haverhill Coke Company LLC (Haverhill), Gateway Energy and Coke Company, LLC (Granite City) and Middletown Coke Company, LLC (Middletown) cokemaking and heat recovery operations. The Brazil Coke segment consists of its operations in Vitoria, Brazil, where the Company operate a cokemaking facility, ArcelorMittal Brasil S.A. The Coal Logistics segment consists of its Convent Marine Terminal (CMT), Kanawha River Terminals, LLC (KRT), SunCoke Lake Terminal, LLC (Lake Terminal) and Dismal River Terminal, LLC (DRT) coal handling and/or mixing service operations. It designs, develops, builds, owns and operates five cokemaking facilities in the United States, as of December 31, 2016.

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