Financial Analysis: Li Bang International (NASDAQ:LBGJ) versus Worthington Steel (NYSE:WS)

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

Insider & Institutional Ownership

45.4% of Worthington Steel shares are owned by institutional investors. 2.6% of Worthington Steel shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Worthington Steel	$3.13 billion	0.58	$110.70 million	$2.18	16.27
Li Bang International	$11.11 million	1.14	-$1.01 million	N/A	N/A

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

Risk & Volatility

Worthington Steel has a beta of 1.72, indicating that its share price is 72% more volatile than the S&P 500. Comparatively, Li Bang International has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500.

Analyst Ratings

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

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

Worthington Steel presently has a consensus target price of $36.00, indicating a potential upside of 1.49%. Given Worthington Steel’s stronger consensus rating and higher possible upside, research analysts plainly believe Worthington Steel is more favorable than Li Bang International.

Profitability

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

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

Summary

Worthington Steel beats Li Bang International on 11 of the 12 factors compared between the two stocks.

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.

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.