Kaiser Aluminum (NASDAQ:KALU) vs. Techprecision (NASDAQ:TPCS) Head to Head Review

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

Volatility and Risk

Techprecision has a beta of 0.14, indicating that its stock price is 86% less volatile than the S&P 500. Comparatively, Kaiser Aluminum has a beta of 1.49, indicating that its stock price is 49% more volatile than the S&P 500.

Profitability

This table compares Techprecision and Kaiser Aluminum’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Techprecision	-5.64%	-22.22%	-5.68%
Kaiser Aluminum	2.05%	8.03%	2.41%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Techprecision	$34.03 million	1.62	-$2.75 million	($0.19)	-29.21
Kaiser Aluminum	$3.02 billion	0.42	$46.80 million	$3.89	20.14

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

Analyst Ratings

This is a summary of current ratings and recommmendations for Techprecision and Kaiser Aluminum, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Techprecision	1	0	0	0	1.00
Kaiser Aluminum	0	4	1	0	2.20

Kaiser Aluminum has a consensus price target of $78.00, indicating a potential downside of 0.46%. Given Kaiser Aluminum’s stronger consensus rating and higher possible upside, analysts plainly believe Kaiser Aluminum is more favorable than Techprecision.

Institutional & Insider Ownership

15.5% of Techprecision shares are held by institutional investors. Comparatively, 99.3% of Kaiser Aluminum shares are held by institutional investors. 15.4% of Techprecision shares are held by company insiders. Comparatively, 1.4% of Kaiser Aluminum shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Kaiser Aluminum beats Techprecision on 12 of the 14 factors compared between the two stocks.

About Techprecision

TechPrecision Corporation, together with its subsidiaries, manufactures and sells precision, fabricated, and machined metal structural components and systems in the United States. The company operates through two segments, Ranor and Stadco. It provides custom components for ships, submarines, military helicopters, aerospace equipment, components for nuclear power plants, and components for medical systems. The company also provides support services to its manufacturing capabilities comprising manufacturing engineering, quality control, materials procurement, production control, and final assembly. Its finished products are used various markets, including defense, aerospace, nuclear, medical, and precision industrial. The company was founded in 1956 and is headquartered in Westminster, Massachusetts.

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.