ESAB Corporation (ESAB) vs Ryerson Holding Corporation (RYZ)

ESAB Corporation and Ryerson Holding Corporation are both Metal Fabrication companies. ESAB Corporation is the larger, with a market value of $4.2B against $1.2B — 3.4× the size. Ryerson Holding Corporation has negative trailing earnings, so its P/E is not meaningful; ESAB Corporation trades at 25.7×. Ryerson Holding Corporation grew revenue faster over the last twelve months: 31.5% against 9.65%. ESAB Corporation has the higher net margin (5.70% vs −0.56%) and the higher return on invested capital (4.75% vs 0.53%). Both pay a dividend; Ryerson Holding Corporation yields more (2.11% vs 0.24%). Across the 21 metrics below, ESAB Corporation leads on 14 and Ryerson Holding Corporation on 7.

Valuation

Metric ESAB RYZ Metal Fabrication median
P/E 25.67 n/m 17.15
P/S 1.46 0.21 1.14
P/B 1.82 0.95 1.71
Price to free cash flow 22.10 n/m 22.10
EV/EBITDA 14.06 18.71 17.60
EV/Sales 2.19 0.37 1.96
Earnings yield 3.90% (5.16%) 2.28%
Free cash flow yield 4.53% (9.91%) 0.92%

Profitability

Metric ESAB RYZ Metal Fabrication median
Gross margin 36.96% 17.34% 21.08%
Operating margin 12.07% 0.32% 5.14%
Net margin 5.70% (0.56%) 4.70%
Free cash flow margin 6.62% (2.10%) 1.45%
Return on equity 7.56% (3.08%) 0.00%
Return on assets 3.11% (1.03%) 1.56%
Return on invested capital 4.75% 0.53% 2.19%

Growth

Metric ESAB RYZ Metal Fabrication median
Revenue growth (TTM) 9.65% 31.54% 9.93%
EPS growth (last fiscal year) (14.85%) (576.92%) —
Revenue growth, 5-year CAGR 7.83% 5.69% 6.12%
Net income growth, 5-year CAGR 7.57% 0.00% 0.00%

Health

Metric ESAB RYZ Metal Fabrication median
Debt to equity 0.93 0.74 0.30
Current ratio 1.96 2.21 2.08
Net debt to EBITDA 2.11 8.90 1.02

Dividend

Metric ESAB RYZ Metal Fabrication median
Dividend yield 0.24% 2.11% 1.69%
Payout ratio 0.06 0.20 0.06

Size

Metric ESAB RYZ Metal Fabrication median
Market cap 4.22b 1.23b 896.96m

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