Contrasting Webco Industries (OTCMKTS:WEBC) and Perma-Pipe International (NASDAQ:PPIH)

Risk & Volatility

Webco Industries has a beta of 0.05, meaning that its share price is 95% less volatile than the S&P 500. Comparatively, Perma-Pipe International has a beta of 0.46, meaning that its share price is 54% less volatile than the S&P 500.

Earnings & Valuation

This table compares Webco Industries and Perma-Pipe International”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Webco Industries	$608.44 million	0.21	$16.05 million	$8.95	20.78
Perma-Pipe International	$158.38 million	1.06	$8.98 million	$1.54	13.70

Webco Industries has higher revenue and earnings than Perma-Pipe International. Perma-Pipe International is trading at a lower price-to-earnings ratio than Webco Industries, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Webco Industries and Perma-Pipe International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Webco Industries	1.23%	N/A	N/A
Perma-Pipe International	7.31%	17.84%	7.81%

Institutional and Insider Ownership

28.4% of Perma-Pipe International shares are owned by institutional investors. 54.4% of Webco Industries shares are owned by company insiders. Comparatively, 6.0% of Perma-Pipe International shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Perma-Pipe International beats Webco Industries on 6 of the 11 factors compared between the two stocks.

About Webco Industries

Webco Industries, Inc. manufactures and distributes carbon steel, stainless steel, and other metal tubular products. The company offers cold drawn welded and seamless tubing products for use in air cooler and heater, boiler tube, coiled tubing, steam surface condenser, feed water heater, heat exchanger, instrumentation tubing, mechanical tube, welded pipe, pressure tubing, and specialty stainless tubing, as well as original equipment manufacturer applications. It serves power-gen tubing, oil and gas tubular, process tubing, and automotive/industrial tubular industries. Webco Industries, Inc. was founded in 1969 and is headquartered in Sand Springs, Oklahoma.

About Perma-Pipe International

Perma-Pipe International Holdings, Inc., together with its subsidiaries, engineers, designs, manufactures, and sells specialty piping and leak detection systems. It offers insulated and jacketed district heating and cooling piping systems for energy distribution from central energy plants to various locations; and primary and secondary containment piping systems for transporting chemicals, hazardous fluids, and petroleum products, as well as engages in the coating and insulation of oil and gas gathering and transmission pipelines. The company also offers liquid and powder based anti-corrosion coatings for external and internal surfaces of steel pipe, including shapes like bends, reducers, tees, and other spools/fittings that is used in pipelines for the transportation of oil and gas products and potable water. It has operations in the United States, Canada, the Middle East, North Africa, Europe, India, and internationally. The company was formerly known as MFRI, Inc. and changed its name to Perma-Pipe International Holdings, Inc. in March 2017. Perma-Pipe International Holdings, Inc. was incorporated in 1993 and is headquartered in Spring, Texas.