Comparing Kaiser Aluminum (NASDAQ:KALU) & Liquidmetal Technologies (OTCMKTS:LQMT)

Liquidmetal Technologies (OTCMKTS:LQMT) and Kaiser Aluminum (NASDAQ:KALU) are both small-cap industrials companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, earnings, profitability and institutional ownership.

Valuation and Earnings

This table compares Liquidmetal Technologies and Kaiser Aluminum”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Liquidmetal Technologies	$860,000.00	114.87	-$1.51 million	N/A	N/A
Kaiser Aluminum	$3.02 billion	0.43	$46.80 million	$2.67	30.32

Kaiser Aluminum has higher revenue and earnings than Liquidmetal Technologies.

Risk and Volatility

Liquidmetal Technologies has a beta of 0.55, indicating that its stock price is 45% less volatile than the S&P 500. Comparatively, Kaiser Aluminum has a beta of 1.43, indicating that its stock price is 43% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Liquidmetal Technologies and Kaiser Aluminum, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Liquidmetal Technologies	0	0	0	0	0.00
Kaiser Aluminum	0	2	1	0	2.33

Kaiser Aluminum has a consensus price target of $69.00, suggesting a potential downside of 14.76%. Given Kaiser Aluminum’s stronger consensus rating and higher possible upside, analysts plainly believe Kaiser Aluminum is more favorable than Liquidmetal Technologies.

Profitability

This table compares Liquidmetal Technologies and Kaiser Aluminum’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Liquidmetal Technologies	-182.04%	-6.00%	-5.75%
Kaiser Aluminum	1.43%	7.02%	2.06%

Insider and Institutional Ownership

0.1% of Liquidmetal Technologies shares are owned by institutional investors. Comparatively, 99.3% of Kaiser Aluminum shares are owned by institutional investors. 45.4% of Liquidmetal Technologies shares are owned by insiders. Comparatively, 1.4% of Kaiser Aluminum shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Kaiser Aluminum beats Liquidmetal Technologies on 10 of the 12 factors compared between the two stocks.

About Liquidmetal Technologies

Liquidmetal Technologies, Inc., a materials technology company, designs, develops, and sells custom products and parts from bulk amorphous alloys to various industries in the United States and internationally. The company provides bulk amorphous alloy custom products and parts for applications, which include non-consumer electronic devices, medical products, automotive components, and sports and leisure goods. It offers tooling and prototype parts, such as demonstration parts and test samples for customers with products in development; and engages in product licensing activities. In addition, the company partners with third-party manufacturers and licensees to develop and commercialize liquid metal alloy products. The company was incorporated in 1987 and is based in Lake Forest, California.

About Kaiser Aluminum

Kaiser Aluminum Corporation, together with its subsidiaries, engages in manufacture and sale of semi-fabricated specialty aluminum mill products in the United States and internationally. It offers rolled, extruded, and drawn aluminum products used for aerospace and defense, aluminum beverage and food packaging, automotive and general engineering products. The company's automotive extrusions include extruded aluminum products for structural components, crash management systems, anti-lock braking systems, and drawn tubes for drive shafts, as well as offers fabrication services, including sawing and cutting to length. Its packaging products consist of bare and coated 3000- and 5000-series alloy aluminum coil used for beverage and food packaging industry. In addition, the company's general engineering products comprise alloy plate, sheet, rod, bar, tube, wire, and standard extrusion shapes used in various applications, including the production of military vehicles, ordnances, semiconductor manufacturing cells, electronic devices, after-market motor sport parts, tooling plates, parts for machinery and equipment, bolts, screws, nails, and rivets. Further, its rerolled, extruded, drawn, and cast billet aluminum products used for industrial end uses. The company sells its products directly to customers through sales personnel located in the United States, Canada, Western Europe, and China, as well as through independent sales agents in other regions of Asia, Latin America, and the Middle East. Kaiser Aluminum Corporation was founded in 1946 and is headquartered in Franklin, Tennessee.