Schnitzer Steel Industries (NASDAQ:SCHN) and Industrial Services of America (NASDAQ:IDSA) are both small-cap basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, earnings and analyst recommendations.
This table compares Schnitzer Steel Industries and Industrial Services of America’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Schnitzer Steel Industries||5.25%||17.21%||9.76%|
|Industrial Services of America||0.59%||3.03%||1.50%|
Schnitzer Steel Industries pays an annual dividend of $0.75 per share and has a dividend yield of 2.8%. Industrial Services of America does not pay a dividend. Schnitzer Steel Industries pays out 49.0% of its earnings in the form of a dividend.
Insider & Institutional Ownership
89.8% of Schnitzer Steel Industries shares are held by institutional investors. Comparatively, 4.9% of Industrial Services of America shares are held by institutional investors. 3.5% of Schnitzer Steel Industries shares are held by insiders. Comparatively, 27.7% of Industrial Services of America shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This is a breakdown of current recommendations and price targets for Schnitzer Steel Industries and Industrial Services of America, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Schnitzer Steel Industries||1||1||1||0||2.00|
|Industrial Services of America||0||0||0||0||N/A|
Schnitzer Steel Industries presently has a consensus price target of $32.33, indicating a potential upside of 19.09%. Given Schnitzer Steel Industries’ higher probable upside, equities research analysts plainly believe Schnitzer Steel Industries is more favorable than Industrial Services of America.
Valuation & Earnings
This table compares Schnitzer Steel Industries and Industrial Services of America’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Schnitzer Steel Industries||$1.69 billion||0.43||$44.51 million||$1.53||17.75|
|Industrial Services of America||$54.94 million||0.30||-$1.13 million||N/A||N/A|
Schnitzer Steel Industries has higher revenue and earnings than Industrial Services of America.
Volatility & Risk
Schnitzer Steel Industries has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500. Comparatively, Industrial Services of America has a beta of 1.3, meaning that its stock price is 30% more volatile than the S&P 500.
Schnitzer Steel Industries beats Industrial Services of America on 10 of the 14 factors compared between the two stocks.
Schnitzer Steel Industries Company Profile
Schnitzer Steel Industries, Inc. recycles ferrous and nonferrous scrap metals; and manufactures finished steel products worldwide. It operates through two segments, Auto and Metals Recycling (AMR); and Cascade Steel and Scrap (CSS). The AMR segment buys, collects, processes, recycles, sells, and brokers scrap metals, as well as processes mixed and large pieces of scrap metal into smaller pieces by crushing, torching, shearing, shredding, and sorting. This segment offers ferrous scrap metal, a feedstock used in the production of finished steel products; and nonferrous products, including aluminum, copper, stainless steel, nickel, brass, titanium, lead, high temperature alloys, and joint products. It sells ferrous and nonferrous recycled metal products to steel mills, foundries, and smelters. This segment also procures salvaged vehicles and sells serviceable used auto parts from these vehicles through its 53 self-service auto parts stores in the United States and Western Canada, as well as sells auto bodies and parts containing ferrous and nonferrous materials, such as engines, transmissions, and alternators to wholesalers. The CSS segment produces various finished steel products using recycled metal and other raw materials. It offers semi-finished goods, which include billets; and finished goods consisting of rebar, coiled rebar, wire rods, merchant bars, and other specialty products. This segment serves steel service centers, construction industry subcontractors, steel fabricators, wire drawers, and farm and wood products suppliers. Schnitzer Steel Industries, Inc. was founded in 1906 and is headquartered in Portland, Oregon.
Industrial Services of America Company Profile
Industrial Services of America, Inc. buys, processes, and markets ferrous and non-ferrous metals, and other recyclable commodities in the United States. The company processes scrap metal through its sorting, cutting, baling, and shredding operations. Its non-ferrous scrap recycling operations consist primarily of collecting, sorting, and processing various grades of copper, aluminum, and stainless steel and brass. The company sells ferrous and non-ferrous scrap metal to steel mini-mills, integrated steel makers, foundries, refineries, and processors. It also buys and sells used auto parts. The company was founded in 1953 and is based in Louisville, Kentucky.
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