Analyzing Omega Flex (NASDAQ:OFLX) and MRC Global (NYSE:MRC)

Omega Flex (NASDAQ:OFLX) and MRC Global (NYSE:MRC) are both small-cap industrial products companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, profitability, institutional ownership, earnings and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Omega Flex	17.40%	21.09%	16.89%
MRC Global	0.47%	12.82%	3.96%

Earnings and Valuation

This table compares Omega Flex and MRC Global”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Omega Flex	$101.68 million	3.25	$18.01 million	$1.72	19.05
MRC Global	$3.01 billion	0.37	$55.00 million	($0.11)	-116.63

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

Volatility & Risk

Omega Flex has a beta of 0.36, suggesting that its stock price is 64% less volatile than the S&P 500. Comparatively, MRC Global has a beta of 1.61, suggesting that its stock price is 61% more volatile than the S&P 500.

Insider & Institutional Ownership

36.1% of Omega Flex shares are owned by institutional investors. Comparatively, 95.0% of MRC Global shares are owned by institutional investors. 65.2% of Omega Flex shares are owned by company insiders. Comparatively, 2.0% of MRC Global 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.

Analyst Ratings

This is a summary of current recommendations for Omega Flex and MRC Global, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Omega Flex	0	0	0	0	0.00
MRC Global	0	0	3	0	3.00

MRC Global has a consensus target price of $15.00, suggesting a potential upside of 16.92%. Given MRC Global’s stronger consensus rating and higher possible upside, analysts plainly believe MRC Global is more favorable than Omega Flex.

About Omega Flex

Omega Flex, Inc., together with its subsidiaries, manufactures and sells flexible metal hoses and accessories in North America and internationally. It offers flexible gas piping for use in residential and commercial buildings; fittings; containment pining; and corrugated medical tubing for use in hospitals, ambulatory care centers, dental, physician and veterinary clinics, laboratories, and other facilities. The company sells its products under the TracPipe, CounterStrike, AutoSnap, AutoFlare, DoubleTrac, DEF-Trac, and MediTrac brand names. It serves various markets, including construction, manufacturing, transportation, petrochemical, pharmaceutical, and other industries. The company sells its products through independent sales representatives, distributors, fabricating distributors, wholesalers, original equipment manufacturers, and direct sales, as well as through its website. The company was formerly known as Tofle America, Inc. and changed its name to Omega Flex, Inc. in 1996. Omega Flex, Inc. was incorporated in 1975 and is based in Exton, Pennsylvania.

About MRC Global

MRC Global Inc., through its subsidiaries, distributes pipes, valves, fittings, and other infrastructure products and services in the United States, Canada, and internationally. It offers ball, butterfly, gate, globe, check, diaphragm, needle, and plug valves; other products, such as lined corrosion resistant piping systems, control valves, valve automation, and top work components; and valve modification services, including valve control extensions, welding, hydrotesting, painting, coating, x-raying, and actuation assembly. 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 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.