Head to Head Review: Nine Dragons Paper (OTCMKTS:NDGPY) vs. UFP Technologies (NASDAQ:UFPT)

UFP Technologies (NASDAQ:UFPT) and Nine Dragons Paper (OTCMKTS:NDGPY) are both small-cap industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, dividends, risk, institutional ownership, profitability, analyst recommendations and valuation.

Analyst Ratings

This is a summary of recent recommendations and price targets for UFP Technologies and Nine Dragons Paper, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
UFP Technologies	0	1	1	0	2.50
Nine Dragons Paper	0	0	0	0	0.00

UFP Technologies presently has a consensus target price of $252.00, suggesting a potential upside of 8.62%. Given UFP Technologies’ stronger consensus rating and higher possible upside, equities research analysts plainly believe UFP Technologies is more favorable than Nine Dragons Paper.

Volatility & Risk

UFP Technologies has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500. Comparatively, Nine Dragons Paper has a beta of 0.25, indicating that its share price is 75% less volatile than the S&P 500.

Insider and Institutional Ownership

87.3% of UFP Technologies shares are held by institutional investors. 4.4% of UFP Technologies shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares UFP Technologies and Nine Dragons Paper’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
UFP Technologies	11.59%	21.27%	12.24%
Nine Dragons Paper	N/A	N/A	N/A

Earnings and Valuation

This table compares UFP Technologies and Nine Dragons Paper”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
UFP Technologies	$504.42 million	3.55	$58.98 million	$8.17	28.40
Nine Dragons Paper	$8.25 billion	0.24	$107.12 million	N/A	N/A

Nine Dragons Paper has higher revenue and earnings than UFP Technologies.

Summary

UFP Technologies beats Nine Dragons Paper on 10 of the 12 factors compared between the two stocks.

About UFP Technologies

UFP Technologies, Inc. designs and manufactures solutions for medical devices, sterile packaging, and other highly engineered custom products. The company offers protective drapes for robotic surgery, single patient use surfaces, advanced wound care, infection prevention, disposables for surgical and endoscopic procedures, packaging for medical devices, orthopedic implants, biopharma drug manufacturing, and coils for catheters; and molded components for applications in acoustic insulation, interior trim, load floors, sunshades, SUV cargo cover handles, driveshaft damping, engine and manifold covers, quarter panels, and wheel liners. It also provides molded composites for commercial aviation and military gear for use in backpack components, knee and elbow pads, eyewear, and helmets; and reusable cases and custom for applications in military ballistics panels, virtual training systems, drones, communications equipment, and rugged portable computers. In addition, the company provides engineered products and components to customers in the automotive, aerospace and defense, and industrial markets for applications in military uniform and gear components, automotive interior trim, air filtration, and protective cases and inserts. It markets and sells its products through a direct sales force. The company was founded in 1963 and is headquartered in Newburyport, Massachusetts.

About Nine Dragons Paper

Nine Dragons Paper (Holdings) Limited, together with its subsidiaries, engages in the production and sale of packaging paper, recycled printing and writing paper, and specialty paper and pulp products in the People's Republic of China. The company offers linerboard products, including kraft, test, white top, and coated linerboards; corrugating medium containerboard products; corrugated cardboard products; carton box products; corrugated sheet products; and coated duplex boards. It also provides recycled printing and writing paper, such as uncoated wood-free paper and office paper; capacitor tissue paper; low and high voltage, ultra-high-voltage transformer coil winding, and heat-resistant insulating paper; and recycled and kraft pulp products. It also operates in Vietnam, Malaysia, and the United States. The company was founded in 1995 and is headquartered in Dongguan, the People's Republic of China. Nine Dragons Paper (Holdings) Limited operates as a subsidiary of Best Result Holdings Limited.