Critical Review: Radius Recycling (NASDAQ:RDUS) & GlyEco (OTCMKTS:GLYE)

Radius Recycling (NASDAQ:RDUS) and GlyEco (OTCMKTS:GLYE) are both business services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, earnings, institutional ownership, profitability, risk, dividends and analyst recommendations.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Radius Recycling and GlyEco, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Radius Recycling	0	1	0	0	2.00
GlyEco	0	0	0	0	0.00

Radius Recycling currently has a consensus target price of $22.00, suggesting a potential downside of 25.75%. Given Radius Recycling’s stronger consensus rating and higher possible upside, equities analysts clearly believe Radius Recycling is more favorable than GlyEco.

Profitability

This table compares Radius Recycling and GlyEco’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Radius Recycling	-3.69%	-15.35%	-5.98%
GlyEco	N/A	N/A	N/A

Valuation and Earnings

This table compares Radius Recycling and GlyEco”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Radius Recycling	$2.74 billion	0.31	-$266.41 million	($9.98)	-2.97
GlyEco	N/A	N/A	N/A	N/A	N/A

GlyEco has lower revenue, but higher earnings than Radius Recycling.

Insider and Institutional Ownership

78.1% of Radius Recycling shares are held by institutional investors. 4.9% of Radius Recycling shares are held by insiders. Comparatively, 22.1% of GlyEco shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

About Radius Recycling

Radius Recycling, Inc. recycles ferrous and nonferrous metal, and manufactures finished steel products worldwide. The company acquires, processes, and recycles salvaged vehicles, rail cars, home appliances, industrial machinery, manufacturing scrap, and construction and demolition scrap. It offers recycled ferrous metal, a feedstock used in the production of finished steel products; and nonferrous products, including mixed metal joint products recovered from the shredding process, such as zorba, zurik, aluminum, copper, stainless steel, nickel, brass, titanium, lead, and high temperature alloys. The company also procures salvaged vehicles and sells serviceable used auto parts from these vehicles through its retail self-service auto parts stores. In addition, it produces various finished steel products using ferrous recycled metal and other raw materials, as well as semi-finished goods, which include billets; and finished goods consisting of rebar, coiled rebar, wire rods, merchant bars, and other specialty products. Further, the company sells catalytic converters to specialty processors that extract the nonferrous precious metals, including platinum, palladium, and rhodium; and ferrous and nonferrous recycled metal products to steel mills, foundries, refineries, smelters, wholesalers, and recycled metal processors, as well as finished steel customers, such as steel service centers, construction industry subcontractors, steel fabricators, wire drawers, and major farm and wood products suppliers. It also provides recycling and related services, including scrap brokerage, certified destruction, automotive parts recycling, railcar dismantling, and reverse logistics under 3PR brand name. Radius Recycling, Inc. was formerly known as Schnitzer Steel Industries, Inc. and changed its name to Radius Recycling, Inc. in January 2024. Radius Recycling, Inc. was founded in 1906 and is headquartered in Portland, Oregon.

About GlyEco

GlyEco, Inc. engages in the development and manufacture of coolants, additives and related performance fluids. Its products and services include additives, ethylene glycol and antifreeze. The company was founded by Janet Carnell Lorenz, John Darc Lorenz, II and Todd L. Smith on April 21, 1997 and is headquartered in Rock Hill, SC.