Financial Comparison: Kaiser Aluminum (NASDAQ:KALU) vs. Omni-Lite Industries Canada (OTCMKTS:OLNCF)

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

Earnings & Valuation

This table compares Kaiser Aluminum and Omni-Lite Industries Canada”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kaiser Aluminum	$3.02 billion	0.40	$46.80 million	$3.89	18.98
Omni-Lite Industries Canada	$15.88 million	1.04	$620,000.00	$0.03	35.50

Kaiser Aluminum has higher revenue and earnings than Omni-Lite Industries Canada. Kaiser Aluminum is trading at a lower price-to-earnings ratio than Omni-Lite Industries Canada, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Kaiser Aluminum and Omni-Lite Industries Canada, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kaiser Aluminum	0	2	1	0	2.33
Omni-Lite Industries Canada	0	0	0	0	0.00

Kaiser Aluminum presently has a consensus target price of $78.00, indicating a potential upside of 5.62%. Given Kaiser Aluminum’s stronger consensus rating and higher probable upside, research analysts plainly believe Kaiser Aluminum is more favorable than Omni-Lite Industries Canada.

Profitability

This table compares Kaiser Aluminum and Omni-Lite Industries Canada’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kaiser Aluminum	2.05%	8.03%	2.41%
Omni-Lite Industries Canada	2.07%	1.79%	1.27%

Risk & Volatility

Kaiser Aluminum has a beta of 1.51, meaning that its stock price is 51% more volatile than the S&P 500. Comparatively, Omni-Lite Industries Canada has a beta of 0.1, meaning that its stock price is 90% less volatile than the S&P 500.

Institutional and Insider Ownership

99.3% of Kaiser Aluminum shares are held by institutional investors. 1.4% of Kaiser Aluminum 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.

Summary

Kaiser Aluminum beats Omni-Lite Industries Canada on 11 of the 14 factors compared between the two stocks.

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.

About Omni-Lite Industries Canada

Omni-Lite Industries Canada Inc. operates as a designer and manufacturer of precision components in the United States and Canada. It offers forged, electronic, and investment casting components for aerospace, military, specialty, automotive, sports, and recreational industries. The company was incorporated in 1992 and is headquartered in Cerritos, California.