Kaiser Aluminum (NASDAQ:KALU) & NN (NASDAQ:NNBR) Head to Head Review

Kaiser Aluminum (NASDAQ:KALU) and NN (NASDAQ:NNBR) are both small-cap industrials companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, profitability, valuation, dividends, institutional ownership and earnings.

Profitability

This table compares Kaiser Aluminum and NN’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%
NN	-7.22%	-6.24%	-1.17%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kaiser Aluminum	$3.02 billion	0.39	$46.80 million	$3.89	18.80
NN	$464.29 million	0.23	-$38.27 million	($0.99)	-2.16

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

Volatility & Risk

Kaiser Aluminum has a beta of 1.51, suggesting that its share price is 51% more volatile than the S&P 500. Comparatively, NN has a beta of 2.03, suggesting that its share price is 103% more volatile than the S&P 500.

Institutional & Insider Ownership

99.3% of Kaiser Aluminum shares are owned by institutional investors. Comparatively, 53.9% of NN shares are owned by institutional investors. 1.4% of Kaiser Aluminum shares are owned by insiders. Comparatively, 7.9% of NN shares are owned 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.

Analyst Ratings

This is a summary of current recommendations for Kaiser Aluminum and NN, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kaiser Aluminum	0	2	1	0	2.33
NN	0	0	0	1	4.00

Kaiser Aluminum currently has a consensus target price of $78.00, suggesting a potential upside of 6.66%. NN has a consensus target price of $4.00, suggesting a potential upside of 86.92%. Given NN’s stronger consensus rating and higher possible upside, analysts clearly believe NN is more favorable than Kaiser Aluminum.

Summary

Kaiser Aluminum beats NN on 10 of the 15 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 NN

NN, Inc., together with its subsidiaries, designs, manufactures, and sells high-precision components and assemblies for various end markets in the United States and internationally. It operates through two segments, Mobile Solutions and Power Solutions. The Mobile Solutions segment manufactures and sells system critical components for automotive, general industrial, and medical end markets for use in power steering, braking, transmissions, gasoline fuel system, diesel injection, and diesel emissions treatment applications, as well as in heating, ventilation, and air conditioning. The Power Solutions segment designs, manufactures, and sells a range of high-precision metal and plastic components, assemblies, and finished devices used in various applications, such as power control and transportation electrification. Its products include electrical contacts, connectors, contact assemblies, and precision stampings for the electrical, general industrial, automotive, aerospace and defense, and medical end markets. This segment also produces various tools and instruments for the orthopaedics and medical/surgical end markets. NN, Inc. was founded in 1980 and is headquartered in Charlotte, North Carolina.