Reviewing L.B. Foster (NASDAQ:FSTR) and ZK International Group (NASDAQ:ZKIN)

L.B. Foster (NASDAQ:FSTR) and ZK International Group (NASDAQ:ZKIN) are both small-cap basic materials companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, dividends, analyst recommendations, institutional ownership, valuation, risk and earnings.

Profitability

This table compares L.B. Foster and ZK International Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
L.B. Foster	7.19%	3.62%	1.89%
ZK International Group	N/A	N/A	N/A

Risk and Volatility

L.B. Foster has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500. Comparatively, ZK International Group has a beta of 2.57, indicating that its stock price is 157% more volatile than the S&P 500.

Valuation & Earnings

This table compares L.B. Foster and ZK International Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
L.B. Foster	$530.77 million	0.46	$42.95 million	$3.31	6.99
ZK International Group	$108.20 million	0.09	-$2.78 million	N/A	N/A

L.B. Foster has higher revenue and earnings than ZK International Group.

Analyst Recommendations

This is a summary of recent recommendations for L.B. Foster and ZK International Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
L.B. Foster	0	1	0	0	2.00
ZK International Group	0	0	0	0	0.00

L.B. Foster currently has a consensus target price of $25.00, suggesting a potential upside of 8.08%. Given L.B. Foster’s stronger consensus rating and higher possible upside, equities research analysts plainly believe L.B. Foster is more favorable than ZK International Group.

Institutional and Insider Ownership

80.6% of L.B. Foster shares are owned by institutional investors. Comparatively, 0.3% of ZK International Group shares are owned by institutional investors. 4.7% of L.B. Foster shares are owned by company insiders. Comparatively, 29.8% of ZK International Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

L.B. Foster beats ZK International Group on 9 of the 11 factors compared between the two stocks.

About L.B. Foster

L.B. Foster Company provides engineered and manufactured products and services for the building and infrastructure projects in the United States, Canada, the United Kingdom, and internationally. It operates through two segments: Rail, Technologies, and Services; and Infrastructure Solutions. The Rail, Technologies, and Services segment offers new rail to passenger and short line freight railroads, industrial companies, and rail contractors, as well as used rails; rail accessories, such as rack spikes, bolts, angle bars, tie plates, and other products; insulated rail joints and related accessories; fixation fasteners, coverboards, and special accessories; and trackwork products. This segment also provides engineered concrete railroad ties, friction management products and application systems, railroad condition monitoring systems and equipment including wheel impact load detection systems, wayside data collection and management systems, and rockfall, flood, earthworks, and bridge strike monitoring; and aftermarket services. The Infrastructure Solutions segment manufactures precast concrete products for use as restrooms, concession stands, and protective storage buildings under the CXT brand for national, state, and municipal parks; and manufactures sounds walls, bridge beams, box culverts, septic tanks, and other custom pre-stressed and precast concrete products. This segment also provides steel bridge products; corrosion protection solutions; concrete-reinforced steel grid decking, open steel grid deck, aluminum bridge railing, and stay-in-place steel bridge forms; cuts, threads, and paints pipe; threading services for water well applications; protective pipeline coating services; and turnkey solutions for metering and injection systems for oil and gas markets. L.B. Foster Company was founded in 1902 and is headquartered in Pittsburgh, Pennsylvania.

About ZK International Group

ZK International Group Co., Ltd., through its subsidiaries, engages in the designing, producing, and selling double-press thin-walled stainless steel, carbon steel, and single-press tubes and fittings in the People's Republic of China. It offers carbon and stainless steel strips; carbon and stainless steel pipes; light gauge stainless steel pipes; pipe connections and fittings; and couplings, unions, adapters, caps, plug pipes, elbows, three-way fittings, tees, cross, side-inlet elbows, wyes, reducers, bushings, pipe fasteners, and pipe flanges. The company also provides stainless steel band, copper strip, valve, light industry machinery and equipment, and other stainless steel products. Its products are used in various applications, including water and gas transmission within urban infrastructural development, residential housing development, food and beverage production, oil and gas exploitation, and agricultural irrigation. The company also exports its products to Europe, Africa, and Southeast Asia. ZK International Group Co., Ltd. was incorporated in 2015 and is based in Wenzhou, the People's Republic of China.