Friedman Industries Inc. (FRD) vs National Steel Company (SID)

Friedman Industries Inc. and National Steel Company are both Steel companies. National Steel Company is the larger, with a market value of $1.0B against $256.1M — 4.0× the size. National Steel Company has negative trailing earnings, so its P/E is not meaningful; Friedman Industries Inc. trades at 6.2×. Friedman Industries Inc. grew revenue faster over the last twelve months: 73.7% against 9.26%. Friedman Industries Inc. has the higher net margin (0.00% vs −5.61%) and the higher return on invested capital (25.8% vs 3.18%). Only Friedman Industries Inc. pays a dividend (0.45%). Across the 21 metrics below, Friedman Industries Inc. leads on 18 and National Steel Company on 3.

Valuation

Metric FRD SID Steel median
P/E 6.19 n/m 16.37
P/S 0.28 0.12 0.70
P/B 1.37 0.34 1.10
Price to free cash flow n/m n/m 22.15
EV/EBITDA 5.62 6.36 8.16
EV/Sales 0.28 1.03 0.79
Earnings yield 16.16% (43.59%) 5.02%
Free cash flow yield (0.61%) (121.74%) 0.00%

Profitability

Metric FRD SID Steel median
Gross margin 0.00% 27.75% 13.96%
Operating margin 8.27% 6.41% 6.93%
Net margin 0.00% (5.61%) 3.14%
Free cash flow margin 0.68% (13.90%) 0.00%
Return on equity 0.00% (15.97%) 2.21%
Return on assets 0.00% (2.54%) 1.83%
Return on invested capital 25.76% 3.18% 3.18%

Growth

Metric FRD SID Steel median
Revenue growth (TTM) 73.68% 9.26% 15.40%
EPS growth (last fiscal year) 217.24% 25.00% (18.80%)
Revenue growth, 5-year CAGR 38.68% 6.59% 7.46%
Net income growth, 5-year CAGR 10.96% 0.00% 0.00%

Health

Metric FRD SID Steel median
Debt to equity 0.02 3.50 0.25
Current ratio 2.68 1.15 2.56
Net debt to EBITDA 0.04 4.48 0.10

Dividend

Metric FRD SID Steel median
Dividend yield 0.45% 0.00% 1.20%
Payout ratio 0.03 — 0.36

Size

Metric FRD SID Steel median
Market cap 256.05m 1.03b 2.07b

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