Contrasting Global Industrial (NYSE:GIC) & MRC Global (NYSE:MRC)

MRC Global (NYSE:MRC) and Global Industrial (NYSE:GIC) are both small-cap industrial products companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, earnings, risk and dividends.

Profitability

This table compares MRC Global and Global Industrial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MRC Global -12.04% -0.58% -0.11%
Global Industrial 6.88% 45.32% 15.27%

Risk & Volatility

MRC Global has a beta of 2.52, indicating that its stock price is 152% more volatile than the S&P 500. Comparatively, Global Industrial has a beta of 0.51, indicating that its stock price is 49% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for MRC Global and Global Industrial, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MRC Global 0 1 2 0 2.67
Global Industrial 0 0 0 0 N/A

MRC Global presently has a consensus target price of $7.50, suggesting a potential downside of 15.45%. Given MRC Global’s higher probable upside, equities analysts clearly believe MRC Global is more favorable than Global Industrial.

Institutional and Insider Ownership

94.1% of MRC Global shares are owned by institutional investors. Comparatively, 29.8% of Global Industrial shares are owned by institutional investors. 22.1% of MRC Global shares are owned by company insiders. Comparatively, 67.0% of Global Industrial shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares MRC Global and Global Industrial’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MRC Global $2.56 billion 0.29 -$274.00 million ($0.24) -36.96
Global Industrial $1.03 billion 1.37 $65.40 million $1.68 22.20

Global Industrial has lower revenue, but higher earnings than MRC Global. MRC Global is trading at a lower price-to-earnings ratio than Global Industrial, indicating that it is currently the more affordable of the two stocks.

Summary

Global Industrial beats MRC Global on 7 of the 12 factors compared between the two stocks.

About MRC Global

MRC Global Inc., through its subsidiaries, distributes pipes, valves, fittings, and other infrastructure products and services to the energy industry in the United States, Canada, and internationally. It offers ball, butterfly, gate, globe, check, diaphragm, needle, and plug valves; and other products, such as lined corrosion resistant piping systems, control valves, valve automation and top work components, and valve modification services, as well as measurement, steam, and instrumentation products. The company also provides carbon steel fittings and flanges comprising carbon weld fittings, flanges, and piping components; stainless steel, alloy and corrosion resistant pipes, tubing, fittings, and flanges; and carbon line pipes. In addition, it offers natural gas distribution products, including risers, meters, polyethylene pipes and fittings, and various other components and industrial supplies; oilfield and industrial supplies and completion equipment, such as high density polyethylene pipes, fittings, and rods; and specialized production equipment comprising tanks and separators. Further, the company provides various services, such as product testing, manufacturer assessments, multiple daily deliveries, volume purchasing, inventory and zone store management and warehousing, technical support, training, just-in-time delivery, truck stocking, order consolidation, product tagging and system interfaces, and valve inspection and repair services; and various other services under the ValidTorque and FastTrack names. Its products are used in the construction, maintenance, repair, and overhaul of equipment used in extreme operating conditions, including high pressure, high/low temperature, and high corrosive and abrasive environments. The company was formerly known as McJunkin Red Man Holding Corporation and changed its name to MRC Global Inc. in January 2012. MRC Global Inc. was founded in 1921 and is headquartered in Houston, Texas.

About Global Industrial

Global Industrial Company, through its subsidiaries, operates as a direct marketer of brand name and private label industrial and business equipment and supplies in North America. It sells a range of maintenance, repair, and operation products, including storage and shelving, material handling, janitorial and maintenance products, furniture and office products, workbenches and shop desks, HVAC/R and fans, safety and security products, outdoor and grounds maintenance products, tools and instruments, and office and school supplies. The company also sells plumbing products and pumps, packaging products and supplies, electrical and lighting products, food service products and appliances, raw materials and building supplies, motors and power transmission products, pneumatics and hydraulics, medical and laboratory equipment, metalworking and cutting tools, vehicle maintenance products, and fasteners and hardware. It offers its products under the Global, GlobalIndustrial.com, Nexel Paramount, and Interion brand names. The company offers its products to businesses, educational organizations, and government entities through relationship marketers, catalogs, and e-commerce sites. The company was formerly known as Systemax Inc. Global Industrial Company was founded in 1949 and is headquartered in Port Washington, New York.

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