Synalloy Corporation (NASDAQ:SYNL) vs. ArcelorMittal (MT) Financial Survey

Synalloy Corporation (NASDAQ: SYNL) and ArcelorMittal (NYSE:MT) are both industrial products companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, earnings, valuation, dividends, profitabiliy, risk and analyst recommendations.

Institutional and Insider Ownership

47.4% of Synalloy Corporation shares are owned by institutional investors. Comparatively, 9.7% of ArcelorMittal shares are owned by institutional investors. 10.6% of Synalloy Corporation shares are owned by insiders. Comparatively, 0.1% of ArcelorMittal shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations for Synalloy Corporation and ArcelorMittal, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Synalloy Corporation	0	0	0	0	N/A
ArcelorMittal	1	1	11	0	2.77

ArcelorMittal has a consensus price target of $31.90, suggesting a potential upside of 19.94%. Given ArcelorMittal’s higher probable upside, analysts plainly believe ArcelorMittal is more favorable than Synalloy Corporation.

Earnings and Valuation

This table compares Synalloy Corporation and ArcelorMittal’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	EBITDA	Earnings Per Share	Price/Earnings Ratio
Synalloy Corporation	$161.06 million	0.57	$6.71 million	($0.29)	-36.55
ArcelorMittal	$61.98 billion	0.44	$7.47 billion	$3.33	7.99

ArcelorMittal has higher revenue and earnings than Synalloy Corporation. Synalloy Corporation is trading at a lower price-to-earnings ratio than ArcelorMittal, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Synalloy Corporation and ArcelorMittal’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Synalloy Corporation	-1.54%	0.64%	0.38%
ArcelorMittal	5.50%	10.52%	4.58%

Risk and Volatility

Synalloy Corporation has a beta of 0.15, indicating that its share price is 85% less volatile than the S&P 500. Comparatively, ArcelorMittal has a beta of 2.09, indicating that its share price is 109% more volatile than the S&P 500.

Summary

ArcelorMittal beats Synalloy Corporation on 9 of the 13 factors compared between the two stocks.

About Synalloy Corporation

Synalloy Corporation is a chemical manufacturing company. The Company operates through two segments: the Metals Segment and the Specialty Chemicals Segment. The Company’s Metals Segment comprises three subsidiaries: Synalloy Metals, Inc., which owns Bristol Metals, LLC (BRISMET), located in Bristol, Tennessee; Palmer of Texas Tanks, Inc. (Palmer), located in Andrews, Texas; and Specialty Pipe & Tube, Inc. (Specialty), located in Mineral Ridge, Ohio and Houston, Texas. The Company’s Metals Segment manufactures stainless steel, other alloy pipe, storage solutions and separation equipment. The Company’s Specialty Chemicals segment consists of the Company’s subsidiary, Manufacturers Soap and Chemical Company (MS&C). The Specialty Chemicals Segment manufactures lubricants, surfactants, reaction intermediaries, sulfated fats and oils, and chemical tolling manufacturing resources.

About ArcelorMittal

ArcelorMittal S.A. (ArcelorMittal) is a holding company. The Company, together with its subsidiaries, owns and operates steel manufacturing and mining facilities in Europe, North and South America, Asia and Africa. ArcelorMittal operates through five segments, which include NAFTA; Europe; Brazil; Africa and Commonwealth of Independent States (ACIS), and Mining. The NAFTA segment produces flat, long and tubular products. The Brazil segment includes the flat operations of Brazil, and the long and tubular operations of Brazil and neighboring countries. The Europe segment is the flat steel producer in Europe. The ACIS segment produces a combination of flat, long products and tubular products. The Mining segment comprises all mines owned by ArcelorMittal in the Americas, Asia, Europe and Africa. It produces a range of finished and semi-finished steel products (semis).