Reviewing MSC Industrial Direct (NYSE:MSM) & IperionX (NASDAQ:IPX)

MSC Industrial Direct (NYSE:MSM) and IperionX (NASDAQ:IPX) are both industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, profitability, earnings, dividends, institutional ownership, analyst recommendations and risk.

Profitability

This table compares MSC Industrial Direct and IperionX’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MSC Industrial Direct	5.30%	14.99%	8.39%
IperionX	N/A	N/A	N/A

Valuation & Earnings

This table compares MSC Industrial Direct and IperionX”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MSC Industrial Direct	$3.82 billion	1.33	$258.59 million	$3.54	25.79
IperionX	N/A	N/A	-$21.84 million	N/A	N/A

MSC Industrial Direct has higher revenue and earnings than IperionX.

Institutional & Insider Ownership

79.3% of MSC Industrial Direct shares are held by institutional investors. Comparatively, 2.8% of IperionX shares are held by institutional investors. 18.3% of MSC Industrial Direct shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility & Risk

MSC Industrial Direct has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500. Comparatively, IperionX has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and target prices for MSC Industrial Direct and IperionX, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MSC Industrial Direct	0	4	1	1	2.50
IperionX	0	0	2	0	3.00

MSC Industrial Direct currently has a consensus target price of $90.33, indicating a potential downside of 1.07%. IperionX has a consensus target price of $46.00, indicating a potential upside of 3.19%. Given IperionX’s stronger consensus rating and higher probable upside, analysts clearly believe IperionX is more favorable than MSC Industrial Direct.

Summary

MSC Industrial Direct beats IperionX on 9 of the 12 factors compared between the two stocks.

About MSC Industrial Direct

MSC Industrial Direct Co., Inc., together with its subsidiaries, distributes metalworking and maintenance, repair, and operations (MRO) products and services in the United States, Canada, Mexico, the United Kingdom, and internationally. The company's MRO products include cutting tools, measuring instruments, tooling components, metalworking products, fasteners, flat stock products, raw materials, abrasives, machinery hand and power tools, safety and janitorial supplies, plumbing supplies, materials handling products, power transmission components, and electrical supplies. It offers stock-keeping units through its catalogs and brochures; e-commerce channels, including its website, mscdirect.com; inventory management solutions; and customer care centers, customer fulfillment centers, regional inventory centers, and warehouses. The company serves individual machine shops, manufacturing companies, and government agencies. MSC Industrial Direct Co., Inc. was founded in 1941 and is headquartered in Melville, New York.

About IperionX

IperionX’s mission is to be the leading developer of low carbon, sustainable, critical material supply chains focused on advanced industries including space, aerospace, electric vehicles and 3D printing. IperionX’s breakthrough titanium technologies have demonstrated the potential to produce titanium products that are sustainable, 100% recyclable, have low carbon intensity and to do so at product qualities that meet or exceed current industry standards. The Company also holds a 100% interest in the Titan Project, covering approximately 11,100 acres of titanium, rare earth minerals, high grade silica sand and zircon rich mineral sands properties in Tennessee.