MRC Global (NYSE:MRC) and Systemax (NYSE:SYX) are both small-cap industrial products companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, profitability, dividends, institutional ownership, valuation, analyst recommendations and earnings.
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.
This table compares MRC Global and Systemax’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
97.9% of MRC Global shares are owned by institutional investors. Comparatively, 28.4% of Systemax shares are owned by institutional investors. 7.0% of MRC Global shares are owned by company insiders. Comparatively, 68.0% of Systemax 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.
Volatility and Risk
MRC Global has a beta of 1.63, meaning that its share price is 63% more volatile than the S&P 500. Comparatively, Systemax has a beta of 0.2, meaning that its share price is 80% less volatile than the S&P 500.
This is a breakdown of recent recommendations and price targets for MRC Global and Systemax, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
MRC Global presently has a consensus target price of $23.13, suggesting a potential upside of 55.41%. Systemax has a consensus target price of $45.00, suggesting a potential upside of 72.94%. Given Systemax’s stronger consensus rating and higher probable upside, analysts clearly believe Systemax is more favorable than MRC Global.
Earnings and Valuation
This table compares MRC Global and Systemax’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|MRC Global||$3.65 billion||0.37||$50.00 million||$0.03||496.00|
|Systemax||$1.27 billion||0.77||$40.40 million||$1.30||20.02|
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.
Systemax beats MRC Global on 9 of the 16 factors compared between the two stocks.
About MRC Global
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.
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.
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