PMFG (NASDAQ: PMFG) and Northern Technologies International (NASDAQ:NTIC) are both small-cap industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, analyst recommendations, earnings, dividends, risk, institutional ownership and valuation.

Risk and Volatility

PMFG has a beta of 1.54, indicating that its share price is 54% more volatile than the S&P 500. Comparatively, Northern Technologies International has a beta of 1.41, indicating that its share price is 41% more volatile than the S&P 500.

Profitability

This table compares PMFG and Northern Technologies International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PMFG -17.71% -31.49% -16.26%
Northern Technologies International 8.65% 7.06% 6.44%

Insider and Institutional Ownership

25.0% of Northern Technologies International shares are owned by institutional investors. 19.5% of Northern Technologies International shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations for PMFG and Northern Technologies International, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PMFG 0 0 0 0 N/A
Northern Technologies International 0 0 0 0 N/A

Earnings & Valuation

This table compares PMFG and Northern Technologies International’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PMFG N/A N/A N/A ($1.51) -4.08
Northern Technologies International $39.57 million 2.35 $3.42 million $0.76 26.97

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

Summary

Northern Technologies International beats PMFG on 7 of the 8 factors compared between the two stocks.

About PMFG

PMFG, Inc. is a provider of custom-engineered systems and products designed for the delivery of energy. The Company operates in two segments: Process Products and Environmental Systems. The Process Products segment produces specialized systems and products that remove contaminants from gases and liquids, reducing maintenance and extending the life of energy infrastructure. The Process Products segment also includes industrial silencing equipment to control noise pollution on a range of industrial equipment and pulsation dampeners that reduce vibration. The Environmental Systems segment designs, engineers and installs systems for combustion modification, fuel conversions and post-combustion nitrogen oxide (NOX) control for both new and existing sources. The Company’s environmental control systems are used for air pollution abatement and converting burners to accommodate alternative sources of fuel.

About Northern Technologies International

Northern Technologies International Corporation develops and markets environmentally beneficial products and services. The Company’s primary business is corrosion prevention marketed mainly under ZERUST and EXCOR brands (collectively ZERUST). The Company’s segments include ZERUST and Natur-Tec. The Company is engaged in selling its ZERUST products and services to the automotive, electronics, electrical, mechanical, military and retail consumer markets. The Company’s ZERUST rust and corrosion inhibiting products include plastic and paper packaging, liquids and coatings, rust removers and cleaners, diffusers and engineered solutions designed specifically for the oil and gas industry. The Company also offers onsite technical consulting for rust and corrosion prevention issues across the world. The Company manufactures and sells a range of bio-based and compostable (fully biodegradable) polymer resin compounds and finished products under the Natur-Tec brand.

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