Head-To-Head Analysis: Huadi International Group (NASDAQ:HUDI) and Metallus (NYSE:MTUS)

Huadi International Group (NASDAQ:HUDI) and Metallus (NYSE:MTUS) are both small-cap basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, analyst recommendations, earnings and profitability.

Risk and Volatility

Huadi International Group has a beta of 2.14, meaning that its stock price is 114% more volatile than the S&P 500. Comparatively, Metallus has a beta of 1.31, meaning that its stock price is 31% more volatile than the S&P 500.

Earnings and Valuation

This table compares Huadi International Group and Metallus”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Huadi International Group	$62.49 million	0.27	-$1.40 million	N/A	N/A
Metallus	$1.16 billion	0.69	-$1.20 million	($0.03)	-638.17

Metallus has higher revenue and earnings than Huadi International Group.

Analyst Ratings

This is a summary of recent ratings for Huadi International Group and Metallus, 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
Metallus	2	2	1	0	1.80

Metallus has a consensus target price of $24.00, suggesting a potential upside of 25.36%. Given Metallus’ stronger consensus rating and higher possible upside, analysts plainly believe Metallus is more favorable than Huadi International Group.

Profitability

This table compares Huadi International Group and Metallus’ 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
Metallus	-0.10%	2.30%	1.41%

Insider and Institutional Ownership

0.2% of Huadi International Group shares are owned by institutional investors. Comparatively, 77.6% of Metallus shares are owned by institutional investors. 75.6% of Huadi International Group shares are owned by company insiders. Comparatively, 3.8% of Metallus shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Metallus beats Huadi International Group on 9 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 Metallus

Metallus Inc. manufactures and sells alloy steel, and carbon and micro-alloy steel products in the United States and internationally. The company offers special bar quality (SBQ) bars, seamless mechanical tubes, precision steel components, and billets that are used in gears, hubs, axles, crankshafts and motor shafts, oil country drill pipes, bits and collars, bearing races and rolling elements, bushings, fuel injectors, wind energy shafts, anti-friction bearings, artillery and mortar bodies, and other applications. It also provides custom-make precision steel components. It offers its products and services to the automotive, energy, industrial equipment, mining, construction, rail, aerospace and defense, heavy truck, agriculture, and power generation sectors. The company was formerly known as TimkenSteel Corporation and changed its name to Metallus Inc. in February 2024. Metallus Inc. was founded in 1899 and is headquartered in Canton, Ohio.