CVD Equipment (NASDAQ:CVV – Get Free Report) and Twin Disc (NASDAQ:TWIN – Get Free Report) are both small-cap industrials companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, earnings, valuation, analyst recommendations, risk, dividends and profitability.
Volatility & Risk
CVD Equipment has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500. Comparatively, Twin Disc has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500.
Profitability
This table compares CVD Equipment and Twin Disc’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CVD Equipment | -0.66% | -0.72% | -0.60% |
| Twin Disc | 0.10% | 0.23% | 0.10% |
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CVD Equipment | $26.88 million | 0.79 | -$1.90 million | ($0.02) | -153.00 |
| Twin Disc | $340.74 million | 0.66 | -$1.89 million | $0.02 | 786.00 |
Twin Disc has higher revenue and earnings than CVD Equipment. CVD Equipment is trading at a lower price-to-earnings ratio than Twin Disc, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current ratings for CVD Equipment and Twin Disc, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CVD Equipment | 1 | 0 | 0 | 0 | 1.00 |
| Twin Disc | 1 | 1 | 1 | 0 | 2.00 |
Twin Disc has a consensus price target of $12.00, indicating a potential downside of 23.66%. Given Twin Disc’s stronger consensus rating and higher probable upside, analysts clearly believe Twin Disc is more favorable than CVD Equipment.
Insider and Institutional Ownership
31.6% of CVD Equipment shares are held by institutional investors. Comparatively, 65.3% of Twin Disc shares are held by institutional investors. 28.7% of CVD Equipment shares are held by insiders. Comparatively, 22.1% of Twin Disc shares are held by 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
Twin Disc beats CVD Equipment on 11 of the 14 factors compared between the two stocks.
About CVD Equipment
CVD Equipment Corporation, together with its subsidiaries, designs, develops, manufactures, and sells equipment to develop and manufacture materials and coatings in the United States and internationally. It operates through three segments: CVD Equipment, Stainless Design Concepts, and CVD Materials. The CVD Equipment segment offers chemical vapor deposition, physical vapor transport, and thermal process equipment under the FirstNano brand for various markets, such as high power electronics, aerospace advanced materials for gas turbine jet engines, and nanomaterials used in batteries, as well as semiconductors, LEDs, carbon nanotubes, nanowires, solar cells, and other industrial and research applications. The Stainless Design Concepts segment provides ultra-high purity gas and chemical delivery control systems, including gas cylinder storage cabinets, custom gas and chemical delivery systems, gas and liquid valve manifold boxes, and gas isolation boxes for semiconductor fabrication processes, aerospace, solar cells, LEDs, carbon nanotubes, nanowires, and industrial applications. The CVD Materials segment offers products related to advanced materials and coatings, such as MesoPlasma printing services and products comprising heaters, antennas, and sensors to aerospace, satellite, power generation, defense, and other markets. The company also provides annealing, diffusion, and low pressure chemical vapor deposition furnaces; and standard and custom fabricated quartz-ware used in its equipment and other customer tools. The company was incorporated in 1982 and is headquartered in Central Islip, New York.
About Twin Disc
Twin Disc, Incorporated engages in the design, manufacture, and sale of marine and heavy duty off-highway power transmission equipment in the United States, the Netherlands, China, Australia, Italy, and internationally. The company operates in two segments, Manufacturing and Distribution. Its principal products include marine transmissions, azimuth drives, surface drives, propellers, and boat management systems, as well as power-shift transmissions, hydraulic torque converters, power take-offs, industrial clutches, and controls systems. The company also provides third-party manufactured products. It sells its products through a direct sales force and distributor network to customers primarily in the pleasure craft, commercial marine, patrol, and military marine markets, as well as in the energy and natural resources, government, agriculture, recycling, construction, oil and gas, and industrial markets. The company was incorporated in 1918 and is headquartered in Milwaukee, Wisconsin.
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