Friedman Industries Inc. (FRD) vs Mesabi Trust (MSB)

Friedman Industries Inc. and Mesabi Trust are both Steel companies. Friedman Industries Inc. is the larger, with a market value of $284.7M against $254.4M — 1.1× the size. Friedman Industries Inc. trades at the lower P/E: 10.2× against 38.8×. Friedman Industries Inc. grew revenue faster over the last twelve months: 61.8% against −87.6%. Mesabi Trust has the higher net margin (54.5% vs 3.59%) and the higher return on invested capital (3,629.0% vs 15.2%). Both pay a dividend; Mesabi Trust yields more (3.89% vs 0.48%). Across the 22 metrics below, Mesabi Trust leads on 12 and Friedman Industries Inc. on 10.

Valuation

Metric FRD MSB Steel median
P/E 10.24 38.80 21.10
P/S 0.37 21.06 0.70
P/B 1.67 14.26 1.39
Price to free cash flow n/m 28.73 23.71
EV/EBITDA 6.25 19.60 10.71
EV/Sales 0.36 19.60 0.85
Earnings yield 9.76% 2.58% 4.56%
Free cash flow yield (2.62%) 3.48% 0.00%

Profitability

Metric FRD MSB Steel median
Gross margin 10.33% 100.00% 13.91%
Operating margin 5.27% 73.89% 4.77%
Net margin 3.59% 54.47% 3.40%
Free cash flow margin (0.96%) 73.32% 0.00%
Return on equity 17.90% 32.13% 2.21%
Return on assets 9.10% 29.07% 1.83%
Return on invested capital 15.24% 3,628.96% 2.52%

Growth

Metric FRD MSB Steel median
Revenue growth (TTM) 61.80% (87.62%) 11.33%
EPS growth (last fiscal year) 217.24% (85.09%) —
Revenue growth, 5-year CAGR 38.68% (7.55%) 6.73%
Net income growth, 5-year CAGR 10.96% (9.94%) 0.00%

Health

Metric FRD MSB Steel median
Debt to equity 0.02 0.00 0.22
Current ratio 2.90 8.81 2.58
Net debt to EBITDA 0.04 (1.61) 0.10

Dividend

Metric FRD MSB Steel median
Dividend yield 0.48% 3.89% 2.48%
Payout ratio 0.03 0.00 0.04

Size

Metric FRD MSB Steel median
Market cap 284.69m 254.40m 1.46b

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