Schnitzer Steel Industries (NASDAQ: SCHN) and Pool (NASDAQ:POOL) are both basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, valuation, dividends, risk and earnings.
Earnings & Valuation
This table compares Schnitzer Steel Industries and Pool’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Schnitzer Steel Industries||$1.69 billion||0.50||$44.51 million||$1.53||20.20|
|Pool||$2.79 billion||2.12||$191.63 million||$3.99||36.46|
Risk & Volatility
Schnitzer Steel Industries has a beta of 1.41, indicating that its share price is 41% more volatile than the S&P 500. Comparatively, Pool has a beta of 0.81, indicating that its share price is 19% less volatile than the S&P 500.
This is a summary of recent ratings and price targets for Schnitzer Steel Industries and Pool, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Schnitzer Steel Industries||0||3||1||0||2.25|
Schnitzer Steel Industries currently has a consensus price target of $32.33, indicating a potential upside of 4.64%. Pool has a consensus price target of $149.67, indicating a potential upside of 2.88%. Given Schnitzer Steel Industries’ higher probable upside, research analysts clearly believe Schnitzer Steel Industries is more favorable than Pool.
Institutional and Insider Ownership
91.0% of Schnitzer Steel Industries shares are held by institutional investors. Comparatively, 95.3% of Pool shares are held by institutional investors. 3.8% of Schnitzer Steel Industries shares are held by insiders. Comparatively, 6.0% of Pool shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This table compares Schnitzer Steel Industries and Pool’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Schnitzer Steel Industries||4.68%||14.28%||8.05%|
Schnitzer Steel Industries pays an annual dividend of $0.75 per share and has a dividend yield of 2.4%. Pool pays an annual dividend of $1.48 per share and has a dividend yield of 1.0%. Schnitzer Steel Industries pays out 49.0% of its earnings in the form of a dividend. Pool pays out 37.1% 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.
Pool beats Schnitzer Steel Industries on 13 of the 16 factors compared between the two stocks.
About Schnitzer Steel Industries
Schnitzer Steel Industries, Inc. is a recycler of ferrous and nonferrous scrap metal, including end-of-life vehicles, and a manufacturer of finished steel products. The Company operates through two segments: the Auto and Metals Recycling (AMR) business and the Steel Manufacturing Business (SMB). The AMR segment collects and recycles auto bodies, rail cars, home appliances, industrial machinery, manufacturing scrap and construction and demolition scrap from bridges, buildings and other infrastructure. AMR’s primary products include recycled ferrous and nonferrous scrap metal. The SMB segment produces finished steel products such as rebar, wire rod, coiled rebar, merchant bar and other specialty products using 100% recycled metal sourced from AMR. SMB’s products are primarily used in nonresidential and infrastructure construction in North America. SMB operates a steel mini-mill in McMinnville, Oregon that produces finished steel products using recycled metal and other raw materials.
Pool Corporation distributes swimming pool supplies, equipment, and related leisure products in North America, Europe, South America, and Australia. The company offers maintenance products, including chemicals, supplies, and pool accessories; repair and replacement parts for pool equipment, such as cleaners, filters, heaters, pumps, and lights; packaged pool kits comprising walls, liners, braces, and coping for in-ground and above-ground pools; pool equipment and components for new pool construction and the remodeling of existing pools; and irrigation and landscape products consisting of irrigation system components, and professional lawn care equipment and supplies. It also provides building materials, such as concrete, plumbing and electrical components, functional and decorative pool surfaces, decking materials, tiles, hardscapes, and natural stones for use in pool installations and remodeling; and commercial products, such as ASME heaters, safety equipment, and commercial pumps and filters. In addition, the company offers discretionary recreational and related outdoor lifestyle products that enhance consumers' use and enjoyment of outdoor living spaces, such as spas, grills, and components for outdoor kitchens. It serves swimming pool remodelers and builders; specialty retailers that sell swimming pool supplies; swimming pool repair and service businesses; irrigation construction and landscape maintenance contractors; and golf course and other commercial customers. As of December 31, 2017, the company operated 351 sales centers. Pool Corporation was founded in 1993 and is headquartered in Covington, Louisiana.
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