Head-To-Head Contrast: Friedman Industries (NASDAQ:FRD) versus Northwest Pipe (NASDAQ:NWPX)

Northwest Pipe (NASDAQ:NWPXGet Free Report) and Friedman Industries (NASDAQ:FRDGet Free Report) are both small-cap industrials companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, profitability, institutional ownership, earnings and valuation.

Risk & Volatility

Northwest Pipe has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500. Comparatively, Friedman Industries has a beta of 1.51, indicating that its share price is 51% more volatile than the S&P 500.

Profitability

This table compares Northwest Pipe and Friedman Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Northwest Pipe 6.65% 8.99% 5.44%
Friedman Industries 1.37% 4.70% 2.80%

Insider and Institutional Ownership

80.6% of Northwest Pipe shares are held by institutional investors. Comparatively, 33.3% of Friedman Industries shares are held by institutional investors. 3.3% of Northwest Pipe shares are held by company insiders. Comparatively, 4.6% of Friedman Industries shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Northwest Pipe and Friedman Industries”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Northwest Pipe $492.55 million 0.82 $34.21 million $3.27 12.54
Friedman Industries $444.60 million 0.26 $6.09 million $0.86 18.99

Northwest Pipe has higher revenue and earnings than Friedman Industries. Northwest Pipe is trading at a lower price-to-earnings ratio than Friedman Industries, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and price targets for Northwest Pipe and Friedman Industries, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Northwest Pipe 0 3 0 0 2.00
Friedman Industries 0 0 0 0 0.00

Northwest Pipe currently has a consensus price target of $55.00, indicating a potential upside of 34.18%. Given Northwest Pipe’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Northwest Pipe is more favorable than Friedman Industries.

Summary

Northwest Pipe beats Friedman Industries on 10 of the 13 factors compared between the two stocks.

About Northwest Pipe

(Get Free Report)

Northwest Pipe Company, together with its subsidiaries, engages in the manufacture and supply of water-related infrastructure products in North America. It operates in two segments, Engineered Steel Pressure Pipe (SPP) and Precast Infrastructure and Engineered Systems (Precast). The SPP segment offers large-diameter and high-pressure steel pipeline systems for use in water infrastructure applications, which are primarily related to drinking water systems. Its products are also used for hydroelectric power systems, wastewater systems, seismic resiliency, and other applications. In addition, this segment makes products for industrial plant piping systems and certain structural applications. The Precast segment provides stormwater and wastewater technology products, precast, and reinforced concrete products, including reinforced concrete pipe, manholes, box culverts, vaults and catch basins, pump lift stations, oil water separators, biofiltration units, steel casing pipes, and bar-wrapped concrete cylinder pipes, as well as pipeline system joints, fittings, specialized components, and other environmental and engineered solutions. The company sells its water infrastructure products under ParkUSA, Geneva Pipe and Precast, Permalok, and Northwest Pipe Company brands primarily to installation contractors. Northwest Pipe Company was incorporated in 1966 and is headquartered in Vancouver, Washington.

About Friedman Industries

(Get Free Report)

Friedman Industries, Incorporated engages in steel processing, pipe manufacturing and processing, and the steel and pipe distribution businesses the United States. It operates in two segments, Coil and Tubular. The Coil segment is involved in the conversion of steel coils into flat sheet and plate steel cut to customer specifications and reselling steel coils. This segment also processes customer-owned coils on a fee basis. The company sells coil products and processing services to approximately 200 customers located primarily in the midwestern, southwestern and southeastern regions of the United States. Its principal customers for these products and services are steel distributors and customers manufacturing steel products, such as steel buildings, railroad cars, barges, tanks and containers, trailers, component parts and other fabricated steel products. The Tubular segment manufactures line and oil country pipes, as well as pipes for structural applications. This segment sells its tubular products principally to steel and pipe distributors through its own sales force. The company was incorporated in 1965 and is headquartered in Longview, Texas.

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