Critical Survey: Lawson Products (LAWS) versus MRC Global (MRC)
Lawson Products (NASDAQ: LAWS) and MRC Global (NYSE:MRC) are both small-cap industrial products companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, earnings, dividends and risk.
Volatility & Risk
Lawson Products has a beta of 1.51, indicating that its share price is 51% more volatile than the S&P 500. Comparatively, MRC Global has a beta of 1.62, indicating that its share price is 62% more volatile than the S&P 500.
Valuation and Earnings
This table compares Lawson Products and MRC Global’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Lawson Products||$287.14 million||0.75||$6.80 million||$0.56||43.21|
|MRC Global||$3.30 billion||0.46||$69.00 million||($0.73)||-21.97|
MRC Global has higher revenue and earnings than Lawson Products. MRC Global is trading at a lower price-to-earnings ratio than Lawson Products, indicating that it is currently the more affordable of the two stocks.
This table compares Lawson Products and MRC Global’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
64.2% of Lawson Products shares are owned by institutional investors. Comparatively, 97.1% of MRC Global shares are owned by institutional investors. 18.2% of Lawson Products shares are owned by insiders. Comparatively, 6.3% of MRC Global shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This is a breakdown of recent recommendations and price targets for Lawson Products and MRC Global, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Lawson Products currently has a consensus target price of $25.00, indicating a potential upside of 3.31%. MRC Global has a consensus target price of $20.86, indicating a potential upside of 30.03%. Given MRC Global’s higher possible upside, analysts plainly believe MRC Global is more favorable than Lawson Products.
Lawson Products beats MRC Global on 7 of the 13 factors compared between the two stocks.
Lawson Products Company Profile
Lawson Products, Inc. is a distributor of products and services the industrial, commercial, institutional and government maintenance, repair and operations (MRO) market. The Company’s product categories include fastening systems, fluid power, specialty chemicals, cutting tools and abrasives, electrical, aftermarket automotive supplies, safety, welding and metal repair, and other. The Company supplies a range of automotive products, including body hardware, body shop, brake/wheel, fleet/truck, repair harness assembly and other parts. The Company offers approximately 200,000 different core products for sale of which approximately 50,000 products are maintained in its distribution centers. The Company’s customers operate in a range of industries, including automotive repair, commercial vehicle maintenance, government, manufacturing, food processing, distribution, construction, oil and gas, mining, wholesale and service.
MRC Global Company Profile
MRC Global Inc. is an industrial distributor of pipe, valves and fittings and related products and services to the energy industry. The Company’s segments include the U.S., Canada and International. Its U.S. segment includes the United States Eastern Region and Gulf Coast, and the United States Western Region. It provides services, such as product testing, manufacturer assessments, daily deliveries, volume purchasing, inventory and zone store management and warehousing, technical support, training, just-in-time delivery, truck stocking, order consolidation, product tagging and system interfaces customized to customer and supplier specifications for tracking and replenishing inventory, engineering of control packages, and valve inspection and repair. The Company’s principal product types include valves, automation, measurement and instrumentation; carbon steel fittings and flanges; stainless steel and alloy fittings, flanges and pipe; gas products; line pipe, and other.
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