The Advisory Board (NASDAQ: ABCO) and TMS International Corp. (NYSE:TMS) are both industrials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, dividends, analyst recommendations, earnings, institutional ownership, risk and valuation.

Earnings and Valuation

This table compares The Advisory Board and TMS International Corp.’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
The Advisory Board $803.42 million 2.73 $91.23 million $1.74 30.94
TMS International Corp. N/A N/A N/A $0.81 21.59

The Advisory Board has higher revenue and earnings than TMS International Corp.. TMS International Corp. is trading at a lower price-to-earnings ratio than The Advisory Board, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and price targets for The Advisory Board and TMS International Corp., as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
The Advisory Board 0 11 3 0 2.21
TMS International Corp. 0 0 0 0 N/A

The Advisory Board currently has a consensus price target of $51.44, suggesting a potential downside of 4.44%. Given The Advisory Board’s higher probable upside, equities analysts plainly believe The Advisory Board is more favorable than TMS International Corp..

Profitability

This table compares The Advisory Board and TMS International Corp.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
The Advisory Board 9.24% 12.31% 3.33%
TMS International Corp. N/A N/A N/A

Insider & Institutional Ownership

95.5% of The Advisory Board shares are owned by institutional investors. 4.7% of The Advisory Board shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

The Advisory Board beats TMS International Corp. on 9 of the 9 factors compared between the two stocks.

About The Advisory Board

The Advisory Board Company is a provider of software and solutions to the healthcare and higher education industries. The Company offers subscription-based membership programs, software and data-enabled services. All of its programs are rooted in best practices and extends across four areas, including Best practices research, Technology, Data-enabled services and Consulting services. The best practices research and insight programs provide the foundation for all of its other programs. The Company offers technology analytics programs anchored by cloud-based software applications that surface performance improvement opportunities to accelerate progress. Through its consulting services, the Company provides on-the-ground support for performance improvement initiatives, as well as best practice professional management of areas of the hospital or medical group. The Company’s data-enabled services are primarily focused in the area of enrollment management.

About TMS International Corp.

TMS International Corp. (TMS), formerly Metal Services Acquisition Corp., is a provider of outsourced industrial services to steel mills in North America. The Company provides a range of services through two segments: Mill Services Group and Raw Material and Optimization Group. The Mill Services Group segment includes scrap management and preparation; semi-finished and finished material handling; metal recovery and slag handling, processing and sales, and surface conditioning. The Raw Material and Optimization Group segment include raw materials procurement and logistics, and software-based raw materials cost optimization. The Company is a holding company controlled by Onex, and it operates through its wholly-owned subsidiaries, including its primary operating company Tube City IMS, LLC. It operates at 74 customer sites in nine countries across North America, Europe and Latin America, and its global raw materials procurement network spans five continents.

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