Ryerson (RYZ) vs. Its Competitors Financial Review

Ryerson (NYSE:RYZ) is one of 158 publicly-traded companies in the “Trading Companies & Distributors” industry, but how does it compare to its competitors? We will compare Ryerson to similar companies based on the strength of its risk, earnings, institutional ownership, valuation, dividends, analyst recommendations and profitability.

Risk & Volatility

Ryerson has a beta of 1.57, meaning that its share price is 57% more volatile than the S&P 500. Comparatively, Ryerson’s competitors have a beta of 1.30, meaning that their average share price is 30% more volatile than the S&P 500.

Earnings and Valuation

This table compares Ryerson and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Ryerson	$4.57 billion	-$56.40 million	-20.44
Ryerson Competitors	$6.63 billion	$366.25 million	20.89

Ryerson’s competitors have higher revenue and earnings than Ryerson. Ryerson is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Dividends

Ryerson pays an annual dividend of $0.75 per share and has a dividend yield of 3.0%. Ryerson pays out -60.5% of its earnings in the form of a dividend. As a group, “Trading Companies & Distributors” companies pay a dividend yield of 3.0% and pay out 36.5% of their earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent recommendations for Ryerson and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ryerson	1	2	0	0	1.67
Ryerson Competitors	1433	4880	6685	222	2.43

As a group, “Trading Companies & Distributors” companies have a potential upside of 12.67%. Given Ryerson’s competitors stronger consensus rating and higher probable upside, analysts plainly believe Ryerson has less favorable growth aspects than its competitors.

Profitability

This table compares Ryerson and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ryerson	-0.56%	-0.62%	-0.21%
Ryerson Competitors	0.61%	-34.52%	3.14%

Insider & Institutional Ownership

94.8% of Ryerson shares are owned by institutional investors. Comparatively, 50.9% of shares of all “Trading Companies & Distributors” companies are owned by institutional investors. 6.6% of Ryerson shares are owned by insiders. Comparatively, 16.9% of shares of all “Trading Companies & Distributors” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Ryerson competitors beat Ryerson on 11 of the 15 factors compared.

About Ryerson

Ryerson Holding Corporation, together with its subsidiaries, processes and distributes industrial metals in the United States, Canada, Mexico, and China. 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 various processing services, such as bending, beveling, blanking, blasting, burning, cutting-to-length, drilling, embossing, flattening, forming, grinding, laser cutting, machining, notching, painting, perforating, polishing, punching, rolling, sawing, scribing, shearing, slitting, stamping, tapping, threading, welding, or other techniques to process materials. It serves various industries, including commercial ground transportation, metal fabrication and machine shops, industrial machinery and equipment manufacturing, consumer durable equipment, HVAC manufacturing, construction equipment manufacturing, food processing and agricultural equipment manufacturing, and oil and gas. The company was founded in 1842 and is headquartered in Chicago, Illinois.