Handy & Harman (NASDAQ: HNH) and Haynes International (NASDAQ:HAYN) are both small-cap multi-sector conglomerates companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, profitability, institutional ownership, valuation, earnings, analyst recommendations and dividends.

Dividends

Haynes International pays an annual dividend of $0.88 per share and has a dividend yield of 2.4%. Handy & Harman does not pay a dividend. Haynes International pays out -314.3% of its earnings in the form of a dividend.

Profitability

This table compares Handy & Harman and Haynes International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Handy & Harman 0.91% 4.84% 1.01%
Haynes International -0.84% -1.59% -0.76%

Analyst Ratings

This is a summary of current recommendations for Handy & Harman and Haynes International, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Handy & Harman 0 0 0 0 N/A
Haynes International 0 1 1 0 2.50

Haynes International has a consensus target price of $36.50, indicating a potential downside of 1.78%. Given Haynes International’s higher possible upside, analysts plainly believe Haynes International is more favorable than Handy & Harman.

Institutional & Insider Ownership

88.2% of Handy & Harman shares are owned by institutional investors. Comparatively, 98.6% of Haynes International shares are owned by institutional investors. 6.1% of Handy & Harman shares are owned by insiders. Comparatively, 4.4% of Haynes International shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Handy & Harman and Haynes International’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Handy & Harman $957.45 million 0.39 $110.27 million $0.71 42.68
Haynes International $401.97 million 1.15 $13.03 million ($0.28) -132.71

Handy & Harman has higher revenue and earnings than Haynes International. Haynes International is trading at a lower price-to-earnings ratio than Handy & Harman, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Handy & Harman has a beta of 1.4, suggesting that its stock price is 40% more volatile than the S&P 500. Comparatively, Haynes International has a beta of 1.53, suggesting that its stock price is 53% more volatile than the S&P 500.

About Handy & Harman

Handy & Harman Ltd. is a holding company. The Company, through its subsidiaries, is a diversified manufacturer of engineered industrial products. The Company’s segments include Joining Materials, Tubing, Building Materials, Performance Materials, Electrical Products, and Kasco Blades and Route Repair Services (Kasco). Joining Materials fabricates precious metals and their alloys into brazing alloys. Tubing manufactures a range of steel tubing products. Building Materials manufactures and supplies products to the commercial construction and building industries. Performance Materials manufactures sheet and mechanically formed glass manufactures sheet and mechanically formed glass, quartz, carbon and aramid materials. Electrical Products segment designs, manufactures and markets power electronics and power protection, among others. Kasco provides meat-room blade products, repair services and resale products for the meat and deli departments of supermarkets and restaurants, among others.

About Haynes International

Haynes International, Inc. (Haynes) is a producer of nickel- and cobalt-based alloys in flat product forms, such as sheet, coil and plate forms. The Company also produces its products as seamless and welded tubulars, and in slab, bar, billet and wire forms. It focuses on developing, manufacturing, marketing and distributing alloys, which are sold in the aerospace, chemical processing and industrial gas turbine industries. Its products consist of high-temperature resistant alloys (HTA) products and corrosion-resistant alloys (CRA) products. Its HTA products are used in manufacturing components for the hot sections of gas turbine engines. Its CRA products are used in a range of applications, such as chemical processing, power plant emissions control, hazardous waste treatment, sour gas production and pharmaceutical vessels. The Company has a four-high Steckel rolling mill used in hot rolling high-performance alloys. The Company has operations in the United States, Europe and China.

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