Friedman Industries Inc. (FRD) vs Metallus Inc. (MTUS)

Friedman Industries Inc. and Metallus Inc. are both Steel companies. Metallus Inc. is the larger, with a market value of $650.2M against $256.1M — 2.5× the size. Friedman Industries Inc. trades at the lower P/E: 6.2× against 27.4×. Friedman Industries Inc. grew revenue faster over the last twelve months: 73.7% against 10.8%. Metallus Inc. has the higher net margin (1.90% vs 0.00%) and the lower return on invested capital (3.06% vs 25.8%). Across the 21 metrics below, Friedman Industries Inc. leads on 14 and Metallus Inc. on 7.

Valuation

Metric FRD MTUS Steel median
P/E 6.19 27.38 16.37
P/S 0.28 0.52 0.70
P/B 1.37 0.91 1.10
Price to free cash flow n/m n/m 22.15
EV/EBITDA 5.62 6.95 8.16
EV/Sales 0.28 0.48 0.79
Earnings yield 16.16% 3.65% 5.02%
Free cash flow yield (0.61%) (14.96%) 0.00%

Profitability

Metric FRD MTUS Steel median
Gross margin 0.00% 8.10% 13.96%
Operating margin 8.27% 2.41% 6.93%
Net margin 0.00% 1.90% 3.14%
Free cash flow margin 0.68% (7.78%) 0.00%
Return on equity 0.00% 3.37% 2.21%
Return on assets 0.00% 2.16% 1.83%
Return on invested capital 25.76% 3.06% 3.18%

Growth

Metric FRD MTUS Steel median
Revenue growth (TTM) 73.68% 10.81% 15.40%
EPS growth (last fiscal year) 217.24% (200.00%) (18.80%)
Revenue growth, 5-year CAGR 38.68% 6.87% 7.46%
Net income growth, 5-year CAGR 10.96% 0.00% 0.00%

Health

Metric FRD MTUS Steel median
Debt to equity 0.02 0.00 0.25
Current ratio 2.68 2.47 2.56
Net debt to EBITDA 0.04 (2.90) 0.10

Dividend

Metric FRD MTUS Steel median
Dividend yield 0.45% — 1.20%
Payout ratio 0.03 — 0.36

Size

Metric FRD MTUS Steel median
Market cap 256.05m 650.24m 2.07b

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