Head to Head Analysis: Friedman Industries (FRD) and The Competition

Earnings and Valuation

This table compares Friedman Industries and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Friedman Industries	$444.60 million	$6.09 million	18.60
Friedman Industries Competitors	$2.03 billion	$107.04 million	5.55

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

Volatility & Risk

Friedman Industries has a beta of 1.51, suggesting that its share price is 51% more volatile than the S&P 500. Comparatively, Friedman Industries’ peers have a beta of 1.00, suggesting that their average share price is 0% more volatile than the S&P 500.

Insider and Institutional Ownership

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

Profitability

This table compares Friedman Industries and its peers’ 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%

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 1.7% and pay out 38.6% of their earnings in the form of a dividend. Friedman Industries has increased its dividend for 1 consecutive years.

Summary

Friedman Industries beats its peers 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.