WallStSmart

Friedman Industries Inc. Common Stock (FRD)vsSteel Dynamics Inc (STLD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Steel Dynamics Inc generates 3154% more annual revenue ($19.01B vs $584.35M). STLD leads profitability with a 7.2% profit margin vs 2.7%. FRD trades at a lower P/E of 11.0x. STLD earns a higher WallStSmart Score of 60/100 (C).

FRD

Hold

49

out of 100

Grade: D+

Growth: 6.7Profit: 5.0Value: 7.7Quality: 7.5
Piotroski: 3/9Altman Z: 4.26

STLD

Buy

60

out of 100

Grade: C

Growth: 6.7Profit: 5.5Value: 3.7Quality: 8.0
Piotroski: 3/9Altman Z: 3.80
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

FRDUndervalued (+24.4%)

Margin of Safety

+24.4%

Fair Value

$27.81

Current Price

$24.40

$3.41 discount

UndervaluedFair: $27.81Overvalued

Intrinsic value data unavailable for STLD.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

FRD4 strengths · Avg: 10.0/10
P/E RatioValuation
11.0x10/10

Attractively priced relative to earnings

Price/BookValuation
1.2x10/10

Reasonable price relative to book value

Revenue GrowthGrowth
78.6%10/10

Revenue surging 78.6% year-over-year

Altman Z-ScoreHealth
4.2610/10

Safe zone — low bankruptcy risk

STLD3 strengths · Avg: 9.3/10
EPS GrowthGrowth
93.1%10/10

Earnings expanding 93.1% YoY

Altman Z-ScoreHealth
3.8010/10

Safe zone — low bankruptcy risk

Revenue GrowthGrowth
19.1%8/10

19.1% revenue growth

Areas to Watch

FRD4 concerns · Avg: 3.0/10
Market CapQuality
$173.54M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
2.7%3/10

2.7% margin — thin

Operating MarginProfitability
2.3%3/10

Operating margin of 2.3%

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

STLD4 concerns · Avg: 3.0/10
P/E RatioValuation
30.3x4/10

Premium valuation, high expectations priced in

Profit MarginProfitability
7.2%3/10

7.2% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
10.912/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : FRD

The strongest argument for FRD centers on P/E Ratio, Price/Book, Revenue Growth. Revenue growth of 78.6% demonstrates continued momentum.

Bull Case : STLD

The strongest argument for STLD centers on EPS Growth, Altman Z-Score, Revenue Growth. Revenue growth of 19.1% demonstrates continued momentum.

Bear Case : FRD

The primary concerns for FRD are Market Cap, Profit Margin, Operating Margin. Thin 2.7% margins leave little buffer for downturns.

Bear Case : STLD

The primary concerns for STLD are P/E Ratio, Profit Margin, Piotroski F-Score.

Key Dynamics to Monitor

FRD profiles as a hypergrowth stock while STLD is a growth play — different risk/reward profiles.

FRD carries more volatility with a beta of 1.63 — expect wider price swings.

FRD is growing revenue faster at 78.6% — sustainability is the question.

STLD generates stronger free cash flow (10M), providing more financial flexibility.

Bottom Line

STLD scores higher overall (60/100 vs 49/100) and 19.1% revenue growth. FRD offers better value entry with a 24.4% margin of safety. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Friedman Industries Inc. Common Stock

BASIC MATERIALS · STEEL · USA

Friedman Industries, Incorporated is engaged in the steel processing, pipe fabrication and processing, and steel and pipe distribution businesses in the United States. The company is headquartered in Longview, Texas.

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Steel Dynamics Inc

BASIC MATERIALS · STEEL · USA

Steel Dynamics, Inc., is a steel producer and metal recycler in the United States.

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