CSW Industrials (NASDAQ: CSWI) and UFP Technologies (NASDAQ:UFPT) are both small-cap basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, analyst recommendations, profitability, valuation, dividends and institutional ownership.

Valuation & Earnings

This table compares CSW Industrials and UFP Technologies’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
CSW Industrials $341.00 million 2.26 $58.23 million $0.98 49.64
UFP Technologies $148.67 million 1.47 $17.67 million $1.23 24.43

CSW Industrials has higher revenue and earnings than UFP Technologies. UFP Technologies is trading at a lower price-to-earnings ratio than CSW Industrials, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

69.5% of CSW Industrials shares are owned by institutional investors. Comparatively, 68.3% of UFP Technologies shares are owned by institutional investors. 2.1% of CSW Industrials shares are owned by insiders. Comparatively, 13.3% of UFP Technologies shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings for CSW Industrials and UFP Technologies, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CSW Industrials 0 0 1 0 3.00
UFP Technologies 0 0 0 0 N/A

Volatility and Risk

CSW Industrials has a beta of 1.36, meaning that its stock price is 36% more volatile than the S&P 500. Comparatively, UFP Technologies has a beta of 0.19, meaning that its stock price is 81% less volatile than the S&P 500.

Profitability

This table compares CSW Industrials and UFP Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CSW Industrials 4.54% 10.53% 7.39%
UFP Technologies 6.03% 6.86% 6.04%

Summary

CSW Industrials beats UFP Technologies on 8 of the 12 factors compared between the two stocks.

CSW Industrials Company Profile

CSW Industrials, Inc. (CSWI) is a diversified industrial growth company. The Company operates through three segments: Industrial Products; Coatings, Sealants & Adhesives, and Specialty Chemicals. The Industrial Products segment consists of specialty mechanical products; fire and smoke protection products; architecturally specified building products, and storage, filtration and application equipment. The Coatings, Sealants & Adhesives segment comprises coatings and penetrants, pipe thread sealants, firestopping sealants, and caulks and adhesives/solvent cements. The Specialty Chemicals segment manufactures and supplies specialized consumables that impart or enhance properties, such as lubricity, anti-seize qualities, friction and heat control. Markets that it serves include HVAC, industrial, rail, plumbing, architecturally specified building products, energy, mining and other general industrial markets.

UFP Technologies Company Profile

UFP Technologies, Inc. is a designer and custom converter of foams, plastics, composites and natural fiber materials. The Company is engaged in providing solutions to customers primarily within the medical, automotive, consumer, electronics, industrial, and aerospace and defense markets. It converts these materials using laminating, molding, and fabricating manufacturing technologies. The Company’s raw materials consist of polyethylene and polyurethane foams, sheet plastics, pulp fiber, cross-linked polyethylene and reticulated polyurethane foams, fabric and foam laminates, and natural fiber materials. The Company converts these materials to provide customers various solutions, including automotive interior trim, medical device components, disposable wound care components, military uniform and gear components, athletic padding, air filtration, high-temperature insulation, abrasive nail files and other beauty aids, and cushion packaging for their products.

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