Webco Industries (OTCMKTS:WEBC) and Synalloy (NASDAQ:SYNL) are both small-cap industrial products companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, risk, institutional ownership, valuation, dividends and analyst recommendations.

Dividends

Synalloy pays an annual dividend of $0.25 per share and has a dividend yield of 1.7%. Webco Industries does not pay a dividend.

Analyst Ratings

This is a breakdown of recent ratings for Webco Industries and Synalloy, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Webco Industries 0 0 0 0 N/A
Synalloy 0 0 0 0 N/A

Profitability

This table compares Webco Industries and Synalloy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Webco Industries 5.74% N/A N/A
Synalloy 5.20% 18.26% 8.98%

Valuation and Earnings

This table compares Webco Industries and Synalloy’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Webco Industries $500.40 million 0.25 $23.32 million N/A N/A
Synalloy $201.15 million 0.66 $1.34 million N/A N/A

Webco Industries has higher revenue and earnings than Synalloy.

Risk & Volatility

Webco Industries has a beta of 1.27, meaning that its stock price is 27% more volatile than the S&P 500. Comparatively, Synalloy has a beta of 0.36, meaning that its stock price is 64% less volatile than the S&P 500.

Insider and Institutional Ownership

55.7% of Synalloy shares are held by institutional investors. 54.4% of Webco Industries shares are held by company insiders. Comparatively, 7.6% of Synalloy shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Synalloy beats Webco Industries on 6 of the 11 factors compared between the two stocks.

Webco Industries Company Profile

Webco Industries, Inc. manufactures and distributes carbon steel, stainless steel, and other metal tubular products. The company offers cold drawn welded and seamless tubing products for use in air cooler and heater, boiler tube, coiled tubing, steam surface condenser, feed water heater, heat exchanger, instrumentation tubing, mechanical tube, welded pipe, pressure tubing, and specialty stainless tubing, as well as original equipment manufacturer applications. It serves power-gen tubing, oil and gas tubular, process tubing, and automotive/industrial tubular industries. Webco Industries, Inc. was founded in 1969 and is headquartered in Sand Springs, Oklahoma.

Synalloy Company Profile

Synalloy Corporation engages in production and sale of stainless steel pipes, fiberglass, steel storage tanks, and specialty chemicals in the United States and internationally. The company operates in two segments, Metals and Specialty Chemicals. The Metals segment manufactures and sells stainless steel and other alloy pipes under the BRISMET trade name through authorized stocking distributors; and liquid storage solutions and separation equipment, as well as distributes seamless carbon pipes and tubes. Its products are used by oil and gas, chemical, petrochemical, pulp and paper, mining, power generation, water and waste water treatment, liquid natural gas, brewery, food processing, petroleum, pharmaceutical, and other industries. The Specialty Chemicals segment produces specialty chemicals, including lubricants, surfactants, defoamers, reaction intermediaries, and sulfated fats and oils for the carpet, chemical, paper, metals, mining, agricultural, fiber, paint, textile, automotive, petroleum, cosmetics, mattress, furniture, janitorial, and other industries. This segment also provides chemical tolling manufacturing resources to global and regional chemical companies; and contracts with other chemical companies to manufacture certain pre-defined products. The company was formerly known as Blackman Uhler Industries, Inc. and changed its name to Synalloy Corporation in July 1967. Synalloy Corporation was founded in 1945 and is headquartered in Richmond, Virginia.

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