Insteel Industries (IIIN) and Worthington Industries (WOR) Head to Head Contrast

Insteel Industries (NASDAQ: IIIN) and Worthington Industries (NYSE:WOR) are both industrial products companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, valuation and institutional ownership.

Analyst Ratings

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This is a breakdown of current ratings and target prices for Insteel Industries and Worthington Industries, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Insteel Industries 0 1 1 0 2.50
Worthington Industries 0 1 0 0 2.00

Insteel Industries currently has a consensus price target of $34.00, suggesting a potential upside of 18.67%. Worthington Industries has a consensus price target of $45.00, suggesting a potential downside of 1.03%. Given Insteel Industries’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Insteel Industries is more favorable than Worthington Industries.

Profitability

This table compares Insteel Industries and Worthington Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Insteel Industries 6.67% 10.13% 7.77%
Worthington Industries 6.47% 17.05% 7.19%

Valuation and Earnings

This table compares Insteel Industries and Worthington Industries’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Insteel Industries $388.87 million 1.40 $22.54 million N/A N/A
Worthington Industries $3.01 billion 0.93 $204.51 million $3.22 14.12

Worthington Industries has higher revenue and earnings than Insteel Industries.

Dividends

Insteel Industries pays an annual dividend of $0.12 per share and has a dividend yield of 0.4%. Worthington Industries pays an annual dividend of $0.84 per share and has a dividend yield of 1.8%. Worthington Industries pays out 26.1% of its earnings in the form of a dividend. Worthington Industries has increased its dividend for 7 consecutive years. Worthington Industries is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk & Volatility

Insteel Industries has a beta of 2.02, suggesting that its stock price is 102% more volatile than the S&P 500. Comparatively, Worthington Industries has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500.

Institutional and Insider Ownership

83.6% of Insteel Industries shares are held by institutional investors. Comparatively, 52.7% of Worthington Industries shares are held by institutional investors. 5.7% of Insteel Industries shares are held by insiders. Comparatively, 31.3% of Worthington Industries shares are held by 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

Insteel Industries beats Worthington Industries on 10 of the 16 factors compared between the two stocks.

Insteel Industries Company Profile

Insteel Industries, Inc., together with its subsidiaries, manufactures and markets steel wire reinforcing products for concrete construction applications. The company markets prestressed concrete strand (PC strand) and welded wire reinforcement (WWR). Its PC strand is a seven-wire strand that is used to impart compression forces into precast concrete elements and structures providing reinforcement for bridges, parking decks, buildings, and other concrete structures. The company's WWR engineered reinforcing product is used in nonresidential and residential construction. It produces a range of WWR products, including engineered structural mesh (ESM), concrete pipe reinforcement (CPR), and standard welded wire reinforcement (SWWR). ESM is an engineered made-to-order product that is used as the primary reinforcement for concrete elements or structures serving as a reinforcing solution for hot-rolled rebar; CPR is an engineered made-to-order product that is used as the primary reinforcement in concrete pipe, box culverts, and precast manholes for drainage and sewage systems, water treatment facilities, and other related applications; and SWWR is a secondary reinforcing product for crack control applications in residential and light nonresidential construction, including driveways, sidewalks, and various slab-on-grade applications. The company sells its products through sales representatives to the manufacturers of concrete products, distributors, rebar fabricators, and contractors primarily in the United States, as well as in Canada, Mexico, and Central and South America. Insteel Industries, Inc. was founded in 1953 and is headquartered in Mount Airy, North Carolina.

Worthington Industries Company Profile

Worthington Industries, Inc. is a metals manufacturing company, focused on value-added steel processing and manufactured metal products. The Company’s segments include Steel Processing, Pressure Cylinders, Engineered Cabs and Other. The Steel Processing segment buys coils of steel from integrated steel mills and mini-mills, and also toll processes steel for steel mills, end users, service centers and other processors. The Pressure Cylinders segment manufactures and sells filled and unfilled pressure cylinders, tanks, hand torches, and oil and gas equipment along with various accessories and related products for end use market applications. The Engineered Cabs is a non-captive designer and manufacturer of custom-engineered open and enclosed cabs and operator stations and custom fabrications for heavy mobile equipment used in the agricultural, construction, forestry, mining and military industries. The Other segment includes Construction Services and Worthington Energy Innovations.

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