Huadi International Group (NASDAQ:HUDI – Get Free Report) and Worthington Steel (NYSE:WS – Get Free Report) 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 profitability, institutional ownership, valuation, earnings, dividends, analyst recommendations and risk.
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 | 0.27 | -$1.40 million | N/A | N/A |
| Worthington Steel | $3.09 billion | 0.62 | $110.70 million | $1.70 | 22.21 |
Analyst Ratings
This is a summary of current ratings for Huadi International Group and Worthington Steel, as provided 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 price target of $46.00, indicating a potential upside of 21.85%. Given Worthington Steel’s stronger consensus rating and higher possible upside, analysts clearly believe Worthington Steel is more favorable than Huadi International Group.
Risk & Volatility
Huadi International Group has a beta of 2.14, suggesting that its share price is 114% more volatile than the S&P 500. Comparatively, Worthington Steel has a beta of 2.06, suggesting that its share price is 106% more volatile than the S&P 500.
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% |
Institutional & 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 company insiders. Comparatively, 2.6% of Worthington Steel shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
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.
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