Head to Head Analysis: MRC Global (NYSE:MRC) & MUELLER WATER PRODUCTS (NYSE:MWA)

MRC Global (NYSE:MRC) and MUELLER WATER PRODUCTS (NYSE:MWA) are both industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, earnings, risk, valuation, analyst recommendations and institutional ownership.

Profitability

This table compares MRC Global and MUELLER WATER PRODUCTS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MRC Global	-0.10%	11.81%	3.67%
MUELLER WATER PRODUCTS	10.67%	20.89%	10.82%

Valuation and Earnings

This table compares MRC Global and MUELLER WATER PRODUCTS”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MRC Global	$3.01 billion	0.39	$55.00 million	($0.24)	-58.15
MUELLER WATER PRODUCTS	$1.31 billion	3.13	$115.90 million	$0.94	28.04

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

Analyst Recommendations

This is a summary of current ratings and price targets for MRC Global and MUELLER WATER PRODUCTS, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MRC Global	0	1	3	0	2.75
MUELLER WATER PRODUCTS	0	2	1	0	2.33

MRC Global presently has a consensus price target of $16.00, indicating a potential upside of 14.65%. MUELLER WATER PRODUCTS has a consensus price target of $28.3333, indicating a potential upside of 7.48%. Given MRC Global’s stronger consensus rating and higher possible upside, analysts clearly believe MRC Global is more favorable than MUELLER WATER PRODUCTS.

Volatility & Risk

MRC Global has a beta of 1.65, meaning that its stock price is 65% more volatile than the S&P 500. Comparatively, MUELLER WATER PRODUCTS has a beta of 1.18, meaning that its stock price is 18% more volatile than the S&P 500.

Institutional and Insider Ownership

95.0% of MRC Global shares are owned by institutional investors. Comparatively, 91.7% of MUELLER WATER PRODUCTS shares are owned by institutional investors. 2.0% of MRC Global shares are owned by company insiders. Comparatively, 1.1% of MUELLER WATER PRODUCTS 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.

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.

About MUELLER WATER PRODUCTS

Mueller Water Products, Inc. manufactures and markets products and services for the transmission, distribution, and measurement of water used by municipalities, and the residential and non-residential construction industries in the United States, Israel, and internationally. It operates in two segments, Water Flow Solutions and Water Management Solutions. The Water Flow Solutions segment provides valves for water systems, such as iron gate, butterfly, tapping, check, knife, plug, and ball valves, which are used to control distribution and transmission of potable water and non-potable water, as well as in water transmission or distribution, water treatment facilities, or industrial applications. It also offers service brass products. The Water Management Solutions segment offers dry-barrel and wet-barrel fire hydrants for water infrastructure development; fire protection systems, and water infrastructure repair and replacement projects; pipe repair products, such as couplings, grips, and clamps used to repair leaks; residential, fire line, and commercial water metering products, systems, and services; water leak detection and pipe condition assessment products and services; machines and tools for tapping, drilling, extracting, installing, and stopping-off; gas valve products for use in gas distribution systems; and intelligent water solutions, including pressure control valves, advanced pressure management, network analytics, event management, and date logging. It sells its products under the Canada Valve, Centurion, Ez-Max, Hydro Gate, Hydro-Guard, HYMAX, HYMAX VERSA, Jones, Krausz, Milliken, Mueller, Pratt, Pratt Industrial, Repamax, Repaflex, Singer, Echologics, Echoshore, ePulse, Hersey, LeakFinderRT, LeakFinderST, LeakListener, LeakTuner, Mi.Echo, Mi.Net, Mueller Systems, Sentryx, and U.S. Pipe Valve and Hydrant brands. Mueller Water Products, Inc. was founded in 1857 and is headquartered in Atlanta, Georgia.