NN (NASDAQ:NNBR – Get Free Report) and Highway (NASDAQ:HIHO – Get Free Report) are both small-cap industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, profitability, valuation, institutional ownership, risk, earnings and analyst recommendations.
Profitability
This table compares NN and Highway’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NN | -8.05% | -0.98% | -0.11% |
| Highway | -13.84% | -12.30% | -8.68% |
Analyst Recommendations
This is a breakdown of current recommendations for NN and Highway, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NN | 2 | 0 | 1 | 0 | 1.67 |
| Highway | 1 | 0 | 0 | 0 | 1.00 |
Valuation & Earnings
This table compares NN and Highway”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NN | $422.21 million | 0.17 | -$34.00 million | ($1.07) | -1.36 |
| Highway | $7.41 million | 0.51 | $110,000.00 | ($0.16) | -5.13 |
Highway has lower revenue, but higher earnings than NN. Highway is trading at a lower price-to-earnings ratio than NN, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
NN has a beta of 2.21, indicating that its stock price is 121% more volatile than the S&P 500. Comparatively, Highway has a beta of 0.49, indicating that its stock price is 51% less volatile than the S&P 500.
Insider and Institutional Ownership
53.9% of NN shares are owned by institutional investors. Comparatively, 13.2% of Highway shares are owned by institutional investors. 7.9% of NN shares are owned by company insiders. Comparatively, 32.1% of Highway shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Summary
NN beats Highway on 10 of the 14 factors compared between the two stocks.
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.
About Highway
Highway Holdings Limited, together with its subsidiaries, manufactures and supplies metal, plastic, electric, and electronic components, subassemblies, and finished products for original equipment manufacturers (OEMs) and contract manufacturers. It operates through two segments, Metal Stamping and Mechanical OEM; and Electric OEM. The company also trades in plastic injection products; and manufactures and assembles automation equipment. Its products are used in the manufacture of products, such as photocopiers, laser printers, print cartridges, electrical connectors, electrical circuits, vacuum cleaners, LED power supplies, stepping motors, pumps for dishwashers, and other washing machine components. In addition, the company assists customers in the design and development of the tooling used in the metal and plastic manufacturing process, as well as provides an array of other manufacturing and engineering services, including metal stamping, screen printing, plastic injection molding, pad printing, and electronic assembly of printed circuit boards. It operates in Hong Kong and China, Europe, North America, and other Asian countries. Highway Holdings Limited was incorporated in 1990 and is headquartered in Sheung Shui, Hong Kong.
Receive News & Ratings for NN Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for NN and related companies with MarketBeat.com's FREE daily email newsletter.
