Friedman Industries (NASDAQ:FRD – Get Free Report) and Endeavour Silver (NYSE:EXK – Get Free Report) are both materials companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, risk, dividends, earnings, analyst recommendations and institutional ownership.
Analyst Recommendations
This is a breakdown of current recommendations for Friedman Industries and Endeavour Silver, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Friedman Industries | 0 | 0 | 1 | 0 | 3.00 |
| Endeavour Silver | 0 | 4 | 5 | 1 | 2.70 |
Endeavour Silver has a consensus target price of $14.50, indicating a potential upside of 76.89%. Given Endeavour Silver’s higher possible upside, analysts clearly believe Endeavour Silver is more favorable than Friedman Industries.
Valuation and Earnings
This table compares Friedman Industries and Endeavour Silver”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Friedman Industries | $646.91 million | 0.47 | $19.53 million | $3.84 | 11.07 |
| Endeavour Silver | $432.80 million | 5.61 | -$119.10 million | $0.21 | 39.03 |
Friedman Industries has higher revenue and earnings than Endeavour Silver. Friedman Industries is trading at a lower price-to-earnings ratio than Endeavour Silver, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Friedman Industries has a beta of 1.65, indicating that its stock price is 65% more volatile than the S&P 500. Comparatively, Endeavour Silver has a beta of 1.41, indicating that its stock price is 41% more volatile than the S&P 500.
Profitability
This table compares Friedman Industries and Endeavour Silver’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Friedman Industries | 3.63% | 18.29% | 8.19% |
| Endeavour Silver | 9.30% | 17.46% | 8.93% |
Insider and Institutional Ownership
33.3% of Friedman Industries shares are owned by institutional investors. Comparatively, 20.1% of Endeavour Silver shares are owned by institutional investors. 6.6% of Friedman Industries shares are owned by company insiders. Comparatively, 0.8% of Endeavour Silver shares are owned 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
Friedman Industries beats Endeavour Silver on 8 of the 15 factors compared between the two stocks.
About Friedman Industries
Friedman Industries, Incorporated engages in steel processing, pipe manufacturing and processing, and the steel and pipe distribution businesses the United States. It operates in two segments, Coil and Tubular. The Coil segment is involved in the conversion of steel coils into flat sheet and plate steel cut to customer specifications and reselling steel coils. This segment also processes customer-owned coils on a fee basis. The company sells coil products and processing services to approximately 200 customers located primarily in the midwestern, southwestern and southeastern regions of the United States. Its principal customers for these products and services are steel distributors and customers manufacturing steel products, such as steel buildings, railroad cars, barges, tanks and containers, trailers, component parts and other fabricated steel products. The Tubular segment manufactures line and oil country pipes, as well as pipes for structural applications. This segment sells its tubular products principally to steel and pipe distributors through its own sales force. The company was incorporated in 1965 and is headquartered in Longview, Texas.
About Endeavour Silver
Endeavour Silver Corp., a silver mining company, engages in the acquisition, exploration, development, extraction, processing, refining, and reclamation of mineral properties in Chile and the United States. It explores for gold and silver deposits, and precious metals. The company was formerly known as Endeavour Gold Corp. and changed its name to Endeavour Silver Corp. in September 2004. Endeavour Silver Corp. was incorporated in 1981 and is headquartered in Vancouver, Canada.
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