Analyzing Industrial Services of America (IDSA) and Sims Metal Management (SMSMY)

Industrial Services of America (NASDAQ:IDSA) and Sims Metal Management (OTCMKTS:SMSMY) are both small-cap business services companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, dividends, valuation, profitability and institutional ownership.

Dividends

Sims Metal Management pays an annual dividend of $0.39 per share and has a dividend yield of 5.1%. Industrial Services of America does not pay a dividend.

Analyst Recommendations

This is a breakdown of current recommendations for Industrial Services of America and Sims Metal Management, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Industrial Services of America 0 0 0 0 N/A
Sims Metal Management 0 0 0 0 N/A

Institutional & Insider Ownership

5.1% of Industrial Services of America shares are owned by institutional investors. Comparatively, 0.0% of Sims Metal Management shares are owned by institutional investors. 27.7% of Industrial Services of America shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Industrial Services of America and Sims Metal Management’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Industrial Services of America 0.08% 0.43% 0.21%
Sims Metal Management N/A N/A N/A

Risk and Volatility

Industrial Services of America has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500. Comparatively, Sims Metal Management has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500.

Valuation and Earnings

This table compares Industrial Services of America and Sims Metal Management’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Industrial Services of America $54.94 million 0.20 -$1.13 million N/A N/A
Sims Metal Management $3.82 billion 0.40 $153.49 million N/A N/A

Sims Metal Management has higher revenue and earnings than Industrial Services of America.

Industrial Services of America Company Profile

Industrial Services of America, Inc. buys, processes, and markets ferrous and non-ferrous metals, and other recyclable commodities in the United States. The company processes scrap metal through its sorting, cutting, baling, and shredding operations. Its non-ferrous scrap recycling operations consist primarily of collecting, sorting, and processing various grades of copper, aluminum, and stainless steel and brass. The company sells ferrous and non-ferrous scrap metal to steel mini-mills, integrated steel makers, foundries, refineries, and processors. It also buys and sells used auto parts. The company was founded in 1953 and is based in Louisville, Kentucky.

Sims Metal Management Company Profile

Sims Metal Management Limited engages in buying, processing, and selling ferrous and non-ferrous recycled metals. The company operates through five segments: North America Metals, Investment in SA Recycling, Australia/New Zealand, Metals, Europe Metals, and Global E-Recycling. It is involved in the collection, processing, and trading of iron and steel secondary raw materials; and other metal alloys and residues, principally aluminum, lead, copper, zinc, and nickel bearing materials. The company also engages in the provision of environmentally responsible solutions for the disposal of post-consumer electronic products, including IT assets recycled for commercial customers; and environmentally responsible recycling of negative value materials, such as refrigerators, and other electrical and electronic equipment. In addition, it provides secondary processing and other services comprising the melting, refining, and ingoting of non-ferrous metals and others. The company was formerly known as Sims Group Limited and changed its name to Sims Metal Management Limited in November 2008. Sims Metal Management Limited was founded in 1917 and is headquartered in Rye, New York.

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