Ryerson (NYSE:RYI – Get Free Report) and Mitsui & Co. (OTCMKTS:MITSY – Get Free Report) are both industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, analyst recommendations, dividends, earnings, institutional ownership and valuation.
Analyst Ratings
This is a breakdown of recent ratings for Ryerson and Mitsui & Co., as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ryerson | 0 | 1 | 0 | 0 | 2.00 |
| Mitsui & Co. | 0 | 0 | 0 | 1 | 4.00 |
Ryerson currently has a consensus target price of $25.00, indicating a potential upside of 12.58%. Given Ryerson’s higher possible upside, research analysts clearly believe Ryerson is more favorable than Mitsui & Co..
Risk and Volatility
Profitability
This table compares Ryerson and Mitsui & Co.’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Ryerson | -0.15% | -0.65% | -0.22% |
| Mitsui & Co. | 6.12% | 11.45% | 5.28% |
Earnings and Valuation
This table compares Ryerson and Mitsui & Co.”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ryerson | $4.60 billion | 0.16 | -$8.60 million | ($0.22) | -100.94 |
| Mitsui & Co. | $96.29 billion | 0.61 | $5.94 billion | $40.18 | 10.19 |
Mitsui & Co. has higher revenue and earnings than Ryerson. Ryerson is trading at a lower price-to-earnings ratio than Mitsui & Co., indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
94.8% of Ryerson shares are held by institutional investors. 4.0% of Ryerson shares are held by company insiders. Comparatively, 0.0% of Mitsui & Co. shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Dividends
Ryerson pays an annual dividend of $0.75 per share and has a dividend yield of 3.4%. Mitsui & Co. pays an annual dividend of $12.72 per share and has a dividend yield of 3.1%. Ryerson pays out -340.9% of its earnings in the form of a dividend. Mitsui & Co. pays out 31.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Ryerson has raised its dividend for 3 consecutive years. Ryerson is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
Mitsui & Co. beats Ryerson on 10 of the 17 factors compared between the two stocks.
About Ryerson
Ryerson Holding Corporation, together with its subsidiaries, processes and distributes industrial metals in the United States and internationally. It offers a line of products in carbon steel, stainless steel, alloy steels, and aluminum, as well as nickel and red metals in various shapes and forms, including coils, sheets, rounds, hexagons, square and flat bars, plates, structural, and tubing. The company also provides processing services. It serves various industries, including metal fabrication and machine shops, industrial machinery and equipment, commercial ground transportation, consumer durable equipment, food processing and agricultural equipment, construction equipment, oil and gas, and HVAC manufacturing. Ryerson Holding Corporation was founded in 1842 and is headquartered in Chicago, Illinois.
About Mitsui & Co.
Mitsui & Co., Ltd. operates as an trading and investment company worldwide. The company engages in the manufacture and sale of steel products; steel processing, maintenance, and recycling activities; investment, development, and trading of mineral and metal resources, as well as resource recycling and industrial developing solutions; and upstream development, logistics, and trading of energy resources, such as natural gas/LNG, oil, coal, and uranium. It also offers power, gas, water, rail, and logistics systems; sales, financing, lease, transportation, and logistics services; and invests in plants, offshore energy development, ships, aviation, space, railways, and automotives, as well as machinery for mining, construction, and industrial use. In addition, the company provides basic chemicals and inorganic raw materials, functional materials, electronic materials, specialty chemicals, housing and lifestyle materials, agri-inputs, animal/human nutrition, and health products; and logistics infrastructures services, including tank terminal operation, as well as plastic recycling and next-generation energy, such as hydrogen and ammonia and forest resources businesses. Further, it engages in the food resources and products, merchandising, retail, fashion and textiles, wellness, healthcare, pharma, hospitality, and human capital businesses. Additionally, it is involved in the ICT, finance, real estate, and logistics businesses. The company was incorporated in 1947 and is headquartered in Tokyo, Japan. Mitsui E&P Italia B operates as a subsidiary of Mitsui & Co., Ltd.
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