NN (NASDAQ:NNBR) & Omni-Lite Industries Canada (OTCMKTS:OLNCF) Financial Analysis

Omni-Lite Industries Canada (OTCMKTS:OLNCF) and NN (NASDAQ:NNBR) are both small-cap industrials companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.

Volatility and Risk

Omni-Lite Industries Canada has a beta of 0.16, suggesting that its stock price is 84% less volatile than the S&P 500. Comparatively, NN has a beta of 2.3, suggesting that its stock price is 130% more volatile than the S&P 500.

Profitability

This table compares Omni-Lite Industries Canada and NN’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Omni-Lite Industries Canada	-0.27%	-0.25%	-0.17%
NN	-10.01%	-2.09%	-0.29%

Earnings and Valuation

This table compares Omni-Lite Industries Canada and NN”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Omni-Lite Industries Canada	$15.88 million	1.23	$620,000.00	$0.01	126.01
NN	$464.29 million	0.15	-$38.27 million	($1.23)	-1.11

Omni-Lite Industries Canada has higher earnings, but lower revenue than NN. NN is trading at a lower price-to-earnings ratio than Omni-Lite Industries Canada, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

53.9% of NN shares are held by institutional investors. 7.9% of NN shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Omni-Lite Industries Canada and NN, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Omni-Lite Industries Canada	0	0	0	0	0.00
NN	1	1	0	1	2.33

NN has a consensus price target of $4.00, suggesting a potential upside of 194.12%. Given NN’s stronger consensus rating and higher probable upside, analysts plainly believe NN is more favorable than Omni-Lite Industries Canada.

About Omni-Lite Industries Canada

Omni-Lite Industries Canada Inc. operates as a designer and manufacturer of precision components in the United States and Canada. It offers forged, electronic, and investment casting components for aerospace, military, specialty, automotive, sports, and recreational industries. The company was incorporated in 1992 and is headquartered in Cerritos, California.

About NN

NN, Inc., together with its subsidiaries, designs, manufactures, and sells high-precision components and assemblies for various end markets in the United States and internationally. It operates through two segments, Mobile Solutions and Power Solutions. The Mobile Solutions segment manufactures and sells system critical components for automotive, general industrial, and medical end markets for use in power steering, braking, transmissions, gasoline fuel system, diesel injection, and diesel emissions treatment applications, as well as in heating, ventilation, and air conditioning. The Power Solutions segment designs, manufactures, and sells a range of high-precision metal and plastic components, assemblies, and finished devices used in various applications, such as power control and transportation electrification. Its products include electrical contacts, connectors, contact assemblies, and precision stampings for the electrical, general industrial, automotive, aerospace and defense, and medical end markets. This segment also produces various tools and instruments for the orthopaedics and medical/surgical end markets. NN, Inc. was founded in 1980 and is headquartered in Charlotte, North Carolina.