Head-To-Head Analysis: Ryerson (NYSE:RYZ) vs. Toromont Industries (OTCMKTS:TMTNF)

Toromont Industries (OTCMKTS:TMTNF) and Ryerson (NYSE:RYZ) are both industrials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, earnings, profitability, risk, analyst recommendations, valuation and dividends.

Earnings & Valuation

This table compares Toromont Industries and Ryerson”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Toromont Industries	$3.72 billion	3.47	$355.41 million	$3.28	48.31
Ryerson	$4.57 billion	0.27	-$56.40 million	($1.24)	-19.25

Toromont Industries has higher earnings, but lower revenue than Ryerson. Ryerson is trading at a lower price-to-earnings ratio than Toromont Industries, indicating that it is currently the more affordable of the two stocks.

Dividends

Toromont Industries pays an annual dividend of $1.62 per share and has a dividend yield of 1.0%. Ryerson pays an annual dividend of $0.75 per share and has a dividend yield of 3.1%. Toromont Industries pays out 49.4% of its earnings in the form of a dividend. Ryerson pays out -60.5% 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 is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

94.8% of Ryerson shares are owned by institutional investors. 6.6% of Ryerson 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.

Profitability

This table compares Toromont Industries and Ryerson’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Toromont Industries	9.25%	15.53%	9.42%
Ryerson	-0.56%	-0.62%	-0.21%

Analyst Recommendations

This is a summary of recent ratings and price targets for Toromont Industries and Ryerson, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Toromont Industries	0	3	4	0	2.57
Ryerson	1	2	0	0	1.67

Summary

Toromont Industries beats Ryerson on 9 of the 14 factors compared between the two stocks.

About Toromont Industries

Toromont Industries Ltd. provides specialized capital equipment in Canada, the United States, and internationally. It operates in two segments, Equipment Group and CIMCO. The Equipment Group segment engages in the sale, rental, and service of mobile equipment for Caterpillar and other manufacturers; sale, rental, and service of engines used in various applications, including industrial, commercial, marine, on-highway trucks, and power generation; and sale of complementary and related products, parts, and services. This segment serves road building, mining, aggregates, infrastructure, residential and commercial construction, power generation, agriculture, forestry, and waste management markets. The CIMCO segment is involved in the design, engineering, fabrication, installation, and after-sale support of refrigeration systems in industrial and recreational markets. This segment primarily serves beverage and food processing, cold storage, food distribution, mining, and recreational ice rink sectors. Toromont Industries Ltd. was founded in 1961 and is headquartered in Concord, Canada.

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.