Highway (NASDAQ:HIHO – Get Free Report) and NWPX Infrastructure (NASDAQ:NWPX – Get Free Report) are both small-cap industrials companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.
Profitability
This table compares Highway and NWPX Infrastructure’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Highway | 1.43% | 1.63% | 1.01% |
| NWPX Infrastructure | 6.69% | 8.93% | 5.61% |
Valuation and Earnings
This table compares Highway and NWPX Infrastructure”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Highway | $7.41 million | 1.03 | $110,000.00 | $0.02 | 82.80 |
| NWPX Infrastructure | $492.55 million | 1.03 | $34.21 million | $3.32 | 15.87 |
NWPX Infrastructure has higher revenue and earnings than Highway. NWPX Infrastructure is trading at a lower price-to-earnings ratio than Highway, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Highway has a beta of 0.2, meaning that its share price is 80% less volatile than the S&P 500. Comparatively, NWPX Infrastructure has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Highway and NWPX Infrastructure, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Highway | 0 | 0 | 0 | 0 | 0.00 |
| NWPX Infrastructure | 0 | 3 | 0 | 0 | 2.00 |
NWPX Infrastructure has a consensus price target of $57.50, suggesting a potential upside of 9.13%. Given NWPX Infrastructure’s stronger consensus rating and higher probable upside, analysts clearly believe NWPX Infrastructure is more favorable than Highway.
Institutional & Insider Ownership
13.2% of Highway shares are held by institutional investors. Comparatively, 80.6% of NWPX Infrastructure shares are held by institutional investors. 32.1% of Highway shares are held by company insiders. Comparatively, 3.2% of NWPX Infrastructure shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Summary
NWPX Infrastructure beats Highway on 11 of the 13 factors compared between the two stocks.
About Highway
Highway Holdings Limited, together with its subsidiaries, manufactures and supplies metal, plastic, electric, and electronic components, subassemblies, and finished products for original equipment manufacturers (OEMs) and contract manufacturers. It operates through two segments, Metal Stamping and Mechanical OEM; and Electric OEM. The company also trades in plastic injection products; and manufactures and assembles automation equipment. Its products are used in the manufacture of products, such as photocopiers, laser printers, print cartridges, electrical connectors, electrical circuits, vacuum cleaners, LED power supplies, stepping motors, pumps for dishwashers, and other washing machine components. In addition, the company assists customers in the design and development of the tooling used in the metal and plastic manufacturing process, as well as provides an array of other manufacturing and engineering services, including metal stamping, screen printing, plastic injection molding, pad printing, and electronic assembly of printed circuit boards. It operates in Hong Kong and China, Europe, North America, and other Asian countries. Highway Holdings Limited was incorporated in 1990 and is headquartered in Sheung Shui, Hong Kong.
About NWPX Infrastructure
Northwest Pipe Company, together with its subsidiaries, engages in the manufacture and supply of water-related infrastructure products in North America. It operates in two segments, Engineered Steel Pressure Pipe (SPP) and Precast Infrastructure and Engineered Systems (Precast). The SPP segment offers large-diameter and high-pressure steel pipeline systems for use in water infrastructure applications, which are primarily related to drinking water systems. Its products are also used for hydroelectric power systems, wastewater systems, seismic resiliency, and other applications. In addition, this segment makes products for industrial plant piping systems and certain structural applications. The Precast segment provides stormwater and wastewater technology products, precast, and reinforced concrete products, including reinforced concrete pipe, manholes, box culverts, vaults and catch basins, pump lift stations, oil water separators, biofiltration units, steel casing pipes, and bar-wrapped concrete cylinder pipes, as well as pipeline system joints, fittings, specialized components, and other environmental and engineered solutions. The company sells its water infrastructure products under ParkUSA, Geneva Pipe and Precast, Permalok, and Northwest Pipe Company brands primarily to installation contractors. Northwest Pipe Company was incorporated in 1966 and is headquartered in Vancouver, Washington.
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