Contrasting Ryerson (RYZ) & Its Competitors

Ryerson (NYSE:RYZ) is one of 159 publicly-traded companies in the “Trading Companies & Distributors” industry, but how does it contrast to its rivals? We will compare Ryerson to related businesses based on the strength of its profitability, risk, analyst recommendations, dividends, institutional ownership, valuation and earnings.

Insider and Institutional Ownership

94.8% of Ryerson shares are held by institutional investors. Comparatively, 50.9% of shares of all “Trading Companies & Distributors” companies are held by institutional investors. 6.6% of Ryerson shares are held by company insiders. Comparatively, 17.1% of shares of all “Trading Companies & Distributors” companies are held by company 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.

Risk and Volatility

Ryerson has a beta of 1.65, suggesting that its stock price is 65% more volatile than the S&P 500. Comparatively, Ryerson’s rivals have a beta of 1.28, suggesting that their average stock price is 28% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Ryerson and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ryerson	2	1	0	0	1.33
Ryerson Competitors	1410	4871	6701	229	2.44

As a group, “Trading Companies & Distributors” companies have a potential upside of 5.15%. Given Ryerson’s rivals stronger consensus rating and higher probable upside, analysts clearly believe Ryerson has less favorable growth aspects than its rivals.

Profitability

This table compares Ryerson and its rivals’ 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	1.23%	-33.95%	3.23%

Earnings and Valuation

This table compares Ryerson and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Ryerson	$4.57 billion	-$56.40 million	-23.32
Ryerson Competitors	$6.43 billion	$364.40 million	24.94

Ryerson’s rivals have higher revenue and earnings than Ryerson. Ryerson is trading at a lower price-to-earnings ratio than its rivals, 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 2.6%. 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 2.9% and pay out 36.6% of their earnings in the form of a dividend.

Summary

Ryerson rivals 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.