Comparing Systemax (SYX) & MRC Global (MRC)

Systemax (NYSE:SYX) and MRC Global (NYSE:MRC) are both small-cap retail/wholesale companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, institutional ownership, risk, analyst recommendations, profitability, earnings and valuation.

Dividends

Systemax pays an annual dividend of $0.44 per share and has a dividend yield of 1.7%. MRC Global does not pay a dividend. Systemax pays out 33.8% of its earnings in the form of a dividend.

Risk & Volatility

Systemax has a beta of 0.2, indicating that its stock price is 80% less volatile than the S&P 500. Comparatively, MRC Global has a beta of 1.63, indicating that its stock price is 63% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Systemax and MRC Global, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Systemax 0 0 2 0 3.00
MRC Global 0 1 8 0 2.89

Systemax presently has a consensus price target of $45.00, suggesting a potential upside of 72.94%. MRC Global has a consensus price target of $23.13, suggesting a potential upside of 55.41%. Given Systemax’s stronger consensus rating and higher possible upside, equities analysts plainly believe Systemax is more favorable than MRC Global.

Insider & Institutional Ownership

28.4% of Systemax shares are owned by institutional investors. Comparatively, 97.9% of MRC Global shares are owned by institutional investors. 68.0% of Systemax shares are owned by company insiders. Comparatively, 7.0% of MRC Global shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Systemax and MRC Global’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Systemax $1.27 billion 0.77 $40.40 million $1.30 20.02
MRC Global $3.65 billion 0.37 $50.00 million $0.03 496.00

MRC Global has higher revenue and earnings than Systemax. Systemax is trading at a lower price-to-earnings ratio than MRC Global, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Systemax and MRC Global’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Systemax 19.10% 23.98% 11.61%
MRC Global 2.43% 9.12% 2.74%

Summary

Systemax beats MRC Global on 9 of the 16 factors compared between the two stocks.

Systemax Company Profile

Systemax Inc. operates as a direct marketer of brand name and private label products. Its Industrial Products Group segment sells a range of maintenance, repair, and operation products, including storage and shelving, material handling, janitorial and maintenance, furniture and office, HVAC/R and fans, workbench and shop desks, safety and security, outdoor and grounds maintenance, tools and instruments, office and school supplies, plumbing and pumps, packaging and supplies, electrical and lighting, food service and appliances, raw materials and building supplies, motors and power transmission, pneumatics and hydraulics, medical and laboratory equipment, metalworking and cutting tools, vehicle maintenance, and fasteners and hardware in North America. This segment offers its products under the Global, GlobalIndustrial.com, Nexel Relius, Relius Solutions, Paramount, and Interion brand names. The company's Europe Technology Products Group segment sells information and communication technology products, such as servers-storage and backup, desktop computers, laptops, tablets, monitors, and mobile devices; computer parts and memory; computer components and accessories; networking and security; software; and electronics, and commercial and home networking products. This segment also provides TV and video products; audio products; cameras and surveillance products; GPS products; cell phones; video games; and home and electronics accessories. The company offers its products to for-profit businesses, educational organizations, and government entities through its relationship marketers, catalog mailings, and proprietary Internet Websites. Systemax Inc. was founded in 1949 and is headquartered in Port Washington, New York.

MRC Global Company Profile

MRC Global Inc., through its subsidiaries, distributes pipes, valves, fittings, and related products and services to the energy industry in the United States, Canada, and internationally. The company supplies products across various markets, such as upstream, midstream, and downstream. It offers ball, butterfly, gate, globe, check, diaphragm, needle, and plug valves; and other products, such as lined corrosion resistant piping systems, control valves, valve automation products, and top work components, as well as measurement, steam, and instrumentation products. The company also provides carbon steel fittings and flanges, including carbon weld fittings, flanges, and piping components; stainless, alloy, and corrosion resistant pipes, tubing, fittings, and flanges; and carbon line pipes. In addition, it offers natural gas distribution products comprising risers, meters, polyethylene pipes and fittings, and various other components and industrial supplies; oilfield and industrial supplies and completion equipment consisting of high density polyethylene pipes, fittings, and rods; and specialized production equipment comprising tanks and separators. Further, the company provides various services, such as product testing, manufacturer assessments, multiple daily deliveries, volume purchasing, inventory and zone store management and warehousing, technical support, training, just-in-time delivery, truck stocking, order consolidation, product tagging, and system interfaces. Its products are used in the construction, maintenance, repair, and overhaul of equipment used in extreme operating conditions, including high pressure, high/low temperature, and high corrosive and abrasive environments. The company was formerly known as McJunkin Red Man Holding Corporation and changed its name to MRC Global Inc. in January 2012. MRC Global Inc. was founded in 1921 and is headquartered in Houston, Texas.

Receive News & Ratings for Systemax Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Systemax and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply