Ryerson (NYSE:RYI) and MARUBENI Corp/ADR (OTCMKTS:MARUY) are both basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, risk, earnings, dividends, valuation, analyst recommendations and institutional ownership.
Valuation and Earnings
This table compares Ryerson and MARUBENI Corp/ADR’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Ryerson||$3.36 billion||0.10||$17.10 million||$0.37||24.81|
|MARUBENI Corp/ADR||$68.09 billion||0.21||$1.90 billion||N/A||N/A|
MARUBENI Corp/ADR pays an annual dividend of $2.77 per share and has a dividend yield of 3.4%. Ryerson does not pay a dividend.
Institutional and Insider Ownership
37.4% of Ryerson shares are held by institutional investors. Comparatively, 0.1% of MARUBENI Corp/ADR shares are held by institutional investors. 1.1% of Ryerson shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This table compares Ryerson and MARUBENI Corp/ADR’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent recommendations and price targets for Ryerson and MARUBENI Corp/ADR, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Ryerson presently has a consensus target price of $10.75, suggesting a potential upside of 17.10%. Given Ryerson’s higher possible upside, research analysts clearly believe Ryerson is more favorable than MARUBENI Corp/ADR.
Risk & Volatility
Ryerson has a beta of 1.8, meaning that its share price is 80% more volatile than the S&P 500. Comparatively, MARUBENI Corp/ADR has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500.
Ryerson Company Profile
Ryerson Holding Corporation, together with its subsidiaries, processes and distributes industrial metals in the United States, Canada, Mexico, and China. The company offers a line of products in stainless steel, aluminum, carbon steel, and alloy steels, as well as nickel and red metals in various shapes and forms, including coils, sheets, rounds, hexagons, square and flat bars, plates, structural products, and tubing. It also provides various value-added processing and fabrication services, such as bending, beveling, blanking, blasting, burning, cutting-to-length, drilling, embossing, flattening, forming, grinding, laser cutting, machining, notching, painting, perforating, punching, rolling, sawing, scribing, shearing, slitting, stamping, tapping, threading, welding, or other techniques to process materials. The company serves various industries, including commercial ground transportation manufacturing, metal fabrication and machine shops, industrial machinery and equipment manufacturing, consumer durable equipment, HVAC manufacturing, construction equipment manufacturing, food processing and agricultural equipment manufacturing, and oil and gas. Ryerson Holding Corporation was founded in 1842 and is headquartered in Chicago, Illinois.
MARUBENI Corp/ADR Company Profile
Marubeni Corporation engages in various business activities worldwide. The company trades in grains, feed ingredients, compound feeds, foods, agricultural resources, marine products, processed seafood, fresh and processed meat, and raw ingredients and materials; and apparel, footwear, lifestyle products, office supplies, and textile and industrial materials. It also provides ICT, logistics, healthcare, insurance, finance, and real estate services; agri-input, subcontracting, agriculture and other technical, crop protection product formulation, and fertilizer raw material products and services; petrochemicals and plastics, salt and chlor-alkali products, life science products; electronic components, inorganic mineral resources and chemicals, and fertilizer materials; and wood chips and biomass fuels, pulp and waste papers, paper, paperboards, and building and construction materials. In addition, the company produces LNG; explores for, develops, produces, distributes, and sells oil and gas; produces and trades in uranium; sells equipment for nuclear power plants; trades in steel products and leases steel construction materials; develops iron ore, coal, and copper mines; smelts and refines aluminum; and trades in iron ore, coal, ferroalloy, and ferrous raw materials, as well as on-ferrous metals, ingots, and related products. Further, it undertakes power projects and water business; offers engineering, procurement, and construction (EPC) services for plants; invests in oil and gas, and transportation infrastructure projects; and provides EPC, operation, and maintenance services for railway systems. Additionally, the company owns, purchases, operates, leases, sells, and charters aerospace and ship products; trades in and leases automotive products; and sells, services, and finances construction and industrial machinery. The company has strategic partnership with Fulcrum BioEnergy, Inc. Marubeni Corporation was founded in 1858 and is headquartered in Tokyo, Japan.
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