National Presto Industries (NYSE:NPK) & Shanghai Industrial (OTCMKTS:SGHIY) Critical Review

National Presto Industries (NYSE:NPK) and Shanghai Industrial (OTCMKTS:SGHIY) are both small-cap multi-sector conglomerates companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, profitability, risk, dividends, earnings and analyst recommendations.

Valuation and Earnings

This table compares National Presto Industries and Shanghai Industrial”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
National Presto Industries	$388.23 million	2.20	$41.46 million	$5.83	20.50
Shanghai Industrial	$3.71 billion	0.43	$359.94 million	N/A	N/A

Shanghai Industrial has higher revenue and earnings than National Presto Industries.

Profitability

This table compares National Presto Industries and Shanghai Industrial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
National Presto Industries	9.23%	11.42%	9.19%
Shanghai Industrial	N/A	N/A	N/A

Insider and Institutional Ownership

58.6% of National Presto Industries shares are owned by institutional investors. 28.0% of National Presto Industries shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

National Presto Industries pays an annual dividend of $1.00 per share and has a dividend yield of 0.8%. Shanghai Industrial pays an annual dividend of $1.04 per share and has a dividend yield of 7.0%. National Presto Industries pays out 17.2% of its earnings in the form of a dividend.

Volatility and Risk

National Presto Industries has a beta of 0.49, meaning that its stock price is 51% less volatile than the S&P 500. Comparatively, Shanghai Industrial has a beta of 0.04, meaning that its stock price is 96% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for National Presto Industries and Shanghai Industrial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
National Presto Industries	0	0	1	0	3.00
Shanghai Industrial	0	0	0	0	0.00

Summary

National Presto Industries beats Shanghai Industrial on 9 of the 13 factors compared between the two stocks.

About National Presto Industries

National Presto Industries, Inc. provides housewares and small appliance, defense, and safety products in North America. The company’s Housewares/Small Appliance segment designs, markets, and distributes housewares and small electrical appliances, including pressure cookers and canners; heat control line of skillets, griddles, woks, and multi-purpose cookers; slow cookers; deep fryers; air fryers; waffle makers; pizza ovens; slicer/shredders; electric heaters; hot air, oil, and microwave corn poppers; dehydrators; vacuum sealers; rice cookers; microwave bacon cookers; egg cookers; coffeemakers and coffeemaker accessories; electric knife sharpeners; and timers under the Presto Control Master brand. This segment sells its products directly to retailers, as well as through independent distributors. Its Defense segment manufactures and sells 40mm ammunition, precision mechanical and electro-mechanical products, medium caliber cartridge cases; and metal parts; and detonators, booster pellets, release cartridges, lead azide, and other military energetic devices and materials. This segment primarily serves the United States Department of Defense (DOD) and DOD prime contractors. The company’s Safety segment patents machine learning, digital sensors, and cloud-based technology to monitor freezers and refrigerators that detects and alerts users to potential safety issues around pharmaceuticals and food. National Presto Industries, Inc. was founded in 1905 and is based in Eau Claire, Wisconsin.

About Shanghai Industrial

Shanghai Industrial Holdings Limited, an investment holding company, engages in the infrastructure and environmental protection, real estate, consumer products, and comprehensive healthcare operations businesses in Hong Kong, China, rest of Asia, and internationally. The company invests in toll road projects and water services/clean energy businesses. It engages in the property development and investment activities, as well as operates hotel. In addition, the company manufactures and sells cigarettes, packaging materials, and printed products; and pharmaceutical and healthcare products. Further, the company involved in the raw materials sourcing business; provision of distribution and supply chain solutions services; and operation and franchise of a network of retail pharmacies. The company was incorporated in 1996 and is based in Wan Chai, Hong Kong. Shanghai Industrial Holdings Limited operates as a subsidiary of Shanghai Industrial Investment (Holding) Co., Ltd.