Analyzing Essentra (OTCMKTS:FLRAF) & Proto Labs (NYSE:PRLB)

Essentra (OTCMKTS:FLRAF) and Proto Labs (NYSE:PRLB) are both small-cap industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, analyst recommendations, institutional ownership, dividends, valuation and profitability.

Insider & Institutional Ownership

84.5% of Proto Labs shares are held by institutional investors. 1.7% of Proto Labs shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Essentra and Proto Labs”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Essentra	$386.45 million	1.01	$13.55 million	N/A	N/A
Proto Labs	$500.89 million	1.90	$16.59 million	$0.60	66.88

Proto Labs has higher revenue and earnings than Essentra.

Volatility & Risk

Essentra has a beta of -0.56, indicating that its share price is 156% less volatile than the S&P 500. Comparatively, Proto Labs has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500.

Profitability

This table compares Essentra and Proto Labs’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Essentra	N/A	N/A	N/A
Proto Labs	2.99%	2.22%	1.99%

Analyst Recommendations

This is a summary of current recommendations for Essentra and Proto Labs, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Essentra	0	0	1	0	3.00
Proto Labs	0	2	1	0	2.33

Proto Labs has a consensus price target of $43.00, indicating a potential upside of 7.15%. Given Proto Labs’ higher probable upside, analysts clearly believe Proto Labs is more favorable than Essentra.

Summary

Proto Labs beats Essentra on 10 of the 11 factors compared between the two stocks.

About Essentra

Essentra plc manufactures and distributes plastic injection and vinyl dip moulded, and metal components worldwide. The company offers cable ties and conduit, and accessories; grommets, strain relief, and blanking plugs; cable glands and accessories; caps and plugs; card guides and pullers; circuit board hardware products; EMI suppression ferrite cores; fan accessories comprising filters and fan mounting accessories; screws and nuts; rivet and panel fasteners; washers; spacers; brushes; fleet; fibre management; and furniture fittings. It also provides gasketing, toggle clamps, and enclosure accessories; handles, knobs, and positioning components; masking tapes, hooks, and bags; hose clamps, O-rings and O-ring kits, and hose protection products; LED mounting, light pipes and lens; LED spacers; locks, latches, catches, and hinges; pipe and flange protection essentra products; tube inserts, connectors, and ferrules; and vibration mounts, dampers, and slide bearings, as well as handwheels. The company offers its products for a range of applications and industries that are used in protection and finish products. The company was formerly known as Filtrona plc and changed its name to Essentra plc in June 2013. Essentra plc was incorporated in 2005 and is based in Oxford, the United Kingdom.

About Proto Labs

Proto Labs, Inc., together with its subsidiaries, operates as a digital manufacturer of custom parts in the United States and Europe. The company offers injection molding; computer numerical control machining; three-dimensional printing; and sheet metal fabrication products. It serves developers and engineers, who use 3D computer-aided design software to design products across a range of end-markets. Proto Labs, Inc. was incorporated in 1999 and is headquartered in Maple Plain, Minnesota.