Head-To-Head Review: Huadi International Group (NASDAQ:HUDI) and Worthington Steel (NYSE:WS)

Huadi International Group (NASDAQ:HUDI) 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 institutional ownership, valuation, earnings, risk, dividends, profitability and analyst recommendations.

Institutional and Insider Ownership

0.2% of Huadi International Group shares are held by institutional investors. Comparatively, 45.4% of Worthington Steel shares are held by institutional investors. 75.6% of Huadi International Group shares are held by insiders. Comparatively, 2.6% of Worthington Steel 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.

Analyst Recommendations

This is a summary of current ratings for Huadi International Group and Worthington Steel, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Huadi International Group	1	0	0	0	1.00
Worthington Steel	1	1	1	0	2.00

Worthington Steel has a consensus target price of $46.00, suggesting a potential upside of 28.17%. Given Worthington Steel’s stronger consensus rating and higher possible upside, analysts clearly believe Worthington Steel is more favorable than Huadi International Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Huadi International Group	N/A	N/A	N/A
Worthington Steel	3.64%	10.12%	5.77%

Volatility and Risk

Huadi International Group has a beta of 2.14, meaning that its share price is 114% more volatile than the S&P 500. Comparatively, Worthington Steel has a beta of 2.06, meaning that its share price is 106% more volatile than the S&P 500.

Valuation and Earnings

This table compares Huadi International Group and Worthington Steel”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Huadi International Group	$62.49 million	0.29	-$1.40 million	N/A	N/A
Worthington Steel	$3.09 billion	0.59	$110.70 million	$1.70	21.11

Worthington Steel has higher revenue and earnings than Huadi International Group.

Summary

Worthington Steel beats Huadi International Group on 10 of the 12 factors compared between the two stocks.

About Huadi International Group

Huadi International Group Co., Ltd. manufactures and sells industrial stainless steel seamless pipes and tubes in the People's Republic of China. The company's products are used in the oil and gas transmission, chemistry engineering, food processing, medical devices, aeronautics and astronautics, boiler, irrigation works construction, electricity, automobile, naval architecture, paper mill, and mechanical industries. It also exports its products to 20 countries, including the United States, Mexico, Thailand, Australia, Argentina, India, the Philippines, the United Arab Emirates, Taiwan, Canada, and internationally. The company was founded in 1992 and is based in Wenzhou, the People's Republic of 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.