L.B. Foster (FSTR) vs. Ryerson (RYI) Financial Analysis

L.B. Foster (NASDAQ: FSTR) and Ryerson (NYSE:RYI) are both small-cap basic materials companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, earnings, profitability, institutional ownership, risk, valuation and analyst recommendations.

Analyst Recommendations

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This is a breakdown of recent ratings and target prices for L.B. Foster and Ryerson, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
L.B. Foster 0 0 0 0 N/A
Ryerson 0 2 2 0 2.50

Ryerson has a consensus target price of $11.69, indicating a potential upside of 17.82%. Given Ryerson’s higher probable upside, analysts clearly believe Ryerson is more favorable than L.B. Foster.

Earnings & Valuation

This table compares L.B. Foster and Ryerson’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
L.B. Foster $536.38 million 0.50 $4.11 million N/A N/A
Ryerson $3.36 billion 0.11 $17.10 million $0.37 26.81

Ryerson has higher revenue and earnings than L.B. Foster.

Insider and Institutional Ownership

70.3% of L.B. Foster shares are held by institutional investors. Comparatively, 39.7% of Ryerson shares are held by institutional investors. 20.3% of L.B. Foster shares are held by company insiders. Comparatively, 1.1% of Ryerson shares 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.

Volatility & Risk

L.B. Foster has a beta of 2.26, indicating that its stock price is 126% more volatile than the S&P 500. Comparatively, Ryerson has a beta of 1.9, indicating that its stock price is 90% more volatile than the S&P 500.

Profitability

This table compares L.B. Foster and Ryerson’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
L.B. Foster 0.77% 6.37% 2.23%
Ryerson 0.51% -71.60% 0.78%

Summary

L.B. Foster beats Ryerson on 8 of the 12 factors compared between the two stocks.

About L.B. Foster

L.B. Foster Company manufactures and distributes products and services for the transportation and energy infrastructure worldwide. Its Rail Products and Services segment offers new rail for passenger and shortline freight railroads, industrial companies, and rail contractors; used rail; rail accessories, such as track spikes, bolts, angle bars, and other products; power rail, direct fixation fasteners, coverboards, and special accessories; and trackwork products, as well as engineers and fabricates insulated rail joints and related accessories. This segment also provides friction management products and application systems, railroad condition monitoring equipment, wheel impact load detection products, rail anchors and spikes, wayside data collection and management systems, epoxy and nylon-encapsulated insulated rail joints, and track fasteners; and engineered concrete railroad ties. The company's Construction Products segment sells and rents steel sheet piling, H-bearing pile, and other piling products; manufactures and sells fabricated steel and aluminum products primarily for the highway, bridge, and transit industries; and produces precast concrete buildings, and pre-stressed and precast concrete products. Its Tubular and Energy Services segment provides pipe coatings for natural gas pipelines and utilities; provides solutions for metering and injection systems for the oil and gas market; offers upstream test and inspection services; provides precision measurement systems, and inspection and tubular integrity management services for the oil and gas market; and produces threaded pipe products for the oil and gas, industrial water well, and irrigation markets. In addition, the company offers telecommunications and security systems; and application engineering solutions. It markets its products directly, as well as through a network of agents. L.B. Foster Company was founded in 1902 and is headquartered in Pittsburgh, Pennsylvania.

About Ryerson

Ryerson Holding Corporation, together with its subsidiaries, processes and distributes industrial metals in the United States, Canada, Mexico, and China. The company offers a line of products in stainless steel, aluminum, carbon steel, and alloy steels, as well as nickel and red metals in various shapes and forms, including coils, sheets, rounds, hexagons, square and flat bars, plates, structural products, and tubing. It also provides various value-added processing and fabrication services, such as bending, beveling, blanking, blasting, burning, cutting-to-length, drilling, embossing, flattening, forming, grinding, laser cutting, machining, notching, painting, perforating, punching, rolling, sawing, scribing, shearing, slitting, stamping, tapping, threading, welding, or other techniques to process materials. The company serves various industries, including commercial ground transportation manufacturing, 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. Ryerson Holding Corporation was founded in 1842 and is headquartered in Chicago, Illinois.

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