Reviewing Li Bang International (NASDAQ:LBGJ) & Worthington Steel (NYSE:WS)

Li Bang International (NASDAQ:LBGJ) and Worthington Steel (NYSE:WS) are both small-cap basic materials companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.

Profitability

This table compares Li Bang International and Worthington Steel’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Li Bang International	N/A	N/A	N/A
Worthington Steel	3.80%	10.11%	6.16%

Analyst Recommendations

This is a summary of current recommendations and price targets for Li Bang International and Worthington Steel, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Li Bang International	1	0	0	0	1.00
Worthington Steel	0	1	1	0	2.50

Worthington Steel has a consensus price target of $36.00, suggesting a potential upside of 6.67%. Given Worthington Steel’s stronger consensus rating and higher possible upside, analysts clearly believe Worthington Steel is more favorable than Li Bang International.

Earnings & Valuation

This table compares Li Bang International and Worthington Steel”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Li Bang International	$11.11 million	1.24	-$1.01 million	N/A	N/A
Worthington Steel	$3.09 billion	0.55	$110.70 million	$2.18	15.48

Worthington Steel has higher revenue and earnings than Li Bang International.

Institutional and Insider Ownership

45.4% of Worthington Steel shares are owned by institutional investors. 2.6% of Worthington Steel shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Worthington Steel beats Li Bang International on 10 of the 11 factors compared between the two stocks.

About Li Bang International

Li Bang International Corporation Inc. specializes in the research, development, production and sale of stainless steel commercial kitchen equipment under its own `Li Bang` brand principally in China. In addition to its product offerings, the Company provides comprehensive services from early-stage design of commercial kitchen appliances to equipment installation and after-sales maintenance. Li Bang International Corporation Inc. is based in Jiangyin, China.

About Worthington Steel

Worthington Steel, Inc. operates as a steel processor in North America. It offers carbon flat-rolled steel and tailor welded blanks, as well as electrical steel laminations; and aluminum tailor welded blanks. The company serves various end-markets, including automotive, heavy truck, agriculture, construction, and energy. Worthington Steel, Inc. was incorporated in 2023 and is based in Columbus, Ohio.