TMS International (NYSE: TMS) and UniFirst (NYSE:UNF) are both industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, profitability, valuation, analyst recommendations, dividends and institutional ownership.
UniFirst pays an annual dividend of $0.15 per share and has a dividend yield of 0.1%. TMS International does not pay a dividend. UniFirst pays out 4.0% of its earnings in the form of a dividend.
This table compares TMS International and UniFirst’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current recommendations for TMS International and UniFirst, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
UniFirst has a consensus target price of $171.00, suggesting a potential upside of 5.20%. Given UniFirst’s higher possible upside, analysts plainly believe UniFirst is more favorable than TMS International.
Earnings and Valuation
This table compares TMS International and UniFirst’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|UniFirst||$1.59 billion||2.07||$70.19 million||$3.72||43.70|
UniFirst has higher revenue and earnings than TMS International. TMS International is trading at a lower price-to-earnings ratio than UniFirst, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
72.6% of UniFirst shares are held by institutional investors. 1.0% of UniFirst shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
UniFirst beats TMS International on 11 of the 12 factors compared between the two stocks.
About TMS International
TMS International Corp. (TMS), formerly Metal Services Acquisition Corp., is a provider of outsourced industrial services to steel mills in North America. The Company provides a range of services through two segments: Mill Services Group and Raw Material and Optimization Group. The Mill Services Group segment includes scrap management and preparation; semi-finished and finished material handling; metal recovery and slag handling, processing and sales, and surface conditioning. The Raw Material and Optimization Group segment include raw materials procurement and logistics, and software-based raw materials cost optimization. The Company is a holding company controlled by Onex, and it operates through its wholly-owned subsidiaries, including its primary operating company Tube City IMS, LLC. It operates at 74 customer sites in nine countries across North America, Europe and Latin America, and its global raw materials procurement network spans five continents.
UniFirst Corporation is a provider of workplace uniforms and protective work wear clothing in the United States. The Company designs, manufactures, personalizes, rents, cleans, delivers, and sells a range of uniforms and protective clothing, including shirts, pants, jackets, coveralls, lab coats, smocks, aprons and specialized protective wear, such as flame resistant and high visibility garments. It operates in six segments: the US Rental and Cleaning, Canadian Rental and Cleaning, Manufacturing (MFG), Specialty Garments Rental and Cleaning (Specialty Garments), First Aid and Corporate. The Company also rents and sells industrial wiping products, floor mats, facility service products and other non-garment items, and provides restroom and cleaning supplies and first aid cabinet services, and other safety supplies. It also decontaminates and cleans work clothes, which has been exposed to radioactive materials and service special cleanroom protective wear and facilities.
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