Contrasting Friedman Industries (FRD) & Its Competitors

Earnings & Valuation

This table compares Friedman Industries and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Friedman Industries	$444.60 million	$6.09 million	18.66
Friedman Industries Competitors	$2.03 billion	$107.04 million	5.45

Friedman Industries’ rivals have higher revenue and earnings than Friedman Industries. Friedman Industries is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Dividends

Friedman Industries pays an annual dividend of $0.16 per share and has a dividend yield of 1.0%. Friedman Industries pays out 18.6% of its earnings in the form of a dividend. As a group, “METAL PROC&FABR” companies pay a dividend yield of 1.8% and pay out 40.2% of their earnings in the form of a dividend. Friedman Industries has increased its dividend for 1 consecutive years.

Profitability

This table compares Friedman Industries and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Friedman Industries	1.37%	4.70%	2.80%
Friedman Industries Competitors	-12.33%	-35.54%	1.38%

Volatility and Risk

Friedman Industries has a beta of 1.51, suggesting that its stock price is 51% more volatile than the S&P 500. Comparatively, Friedman Industries’ rivals have a beta of 0.84, suggesting that their average stock price is 16% less volatile than the S&P 500.

Insider & Institutional Ownership

33.3% of Friedman Industries shares are owned by institutional investors. Comparatively, 57.2% of shares of all “METAL PROC&FABR” companies are owned by institutional investors. 4.6% of Friedman Industries shares are owned by insiders. Comparatively, 12.0% of shares of all “METAL PROC&FABR” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Friedman Industries beats its rivals on 6 of the 11 factors compared.

Friedman Industries Company Profile

Friedman Industries, Incorporated engages in steel processing, pipe manufacturing and processing, and the steel and pipe distribution businesses the United States. It operates in two segments, Coil and Tubular. The Coil segment is involved in the conversion of steel coils into flat sheet and plate steel cut to customer specifications and reselling steel coils. This segment also processes customer-owned coils on a fee basis. The company sells coil products and processing services to approximately 200 customers located primarily in the midwestern, southwestern and southeastern regions of the United States. Its principal customers for these products and services are steel distributors and customers manufacturing steel products, such as steel buildings, railroad cars, barges, tanks and containers, trailers, component parts and other fabricated steel products. The Tubular segment manufactures line and oil country pipes, as well as pipes for structural applications. This segment sells its tubular products principally to steel and pipe distributors through its own sales force. The company was incorporated in 1965 and is headquartered in Longview, Texas.