UFP Technologies (NASDAQ: UFPT) and Enzymotec (NASDAQ:ENZY) are both small-cap industrial products companies, but which is the better business? We will contrast the two companies based on the strength of their risk, institutional ownership, earnings, dividends, valuation, analyst recommendations and profitability.

Earnings & Valuation

This table compares UFP Technologies and Enzymotec’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
UFP Technologies $146.13 million 1.42 $7.97 million $1.09 26.24
Enzymotec $47.70 million 5.82 -$2.92 million ($0.27) -43.89

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for UFP Technologies and Enzymotec, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
UFP Technologies 0 0 0 0 N/A
Enzymotec 0 2 0 0 2.00

Enzymotec has a consensus target price of $11.75, suggesting a potential downside of 0.84%. Given Enzymotec’s higher probable upside, analysts plainly believe Enzymotec is more favorable than UFP Technologies.

Profitability

This table compares UFP Technologies and Enzymotec’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
UFP Technologies 5.43% 6.83% 6.03%
Enzymotec -12.32% -3.26% -2.99%

Institutional and Insider Ownership

69.1% of UFP Technologies shares are owned by institutional investors. Comparatively, 15.7% of Enzymotec shares are owned by institutional investors. 13.3% of UFP Technologies shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

UFP Technologies has a beta of 0.13, meaning that its share price is 87% less volatile than the S&P 500. Comparatively, Enzymotec has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500.

Summary

UFP Technologies beats Enzymotec on 9 of the 12 factors compared between the two stocks.

About UFP Technologies

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.

About Enzymotec

Enzymotec Ltd. is a nutritional ingredients and medical foods company. The Company’s technologies, research expertise and clinical validation process enables it to develop solutions across a range of products. The Company operates in two segments: Nutrition segment and VAYA Pharma segment. Both of the Company’s segments offer a range of products that leverage its lipid-related offerings. Its product suite addresses the entire human life-cycle, from infancy to old age, and comprises ingredients in products ranging from infant formula to nutritional supplements, as well as branded medical foods, sold only under a doctor’s supervision. It markets its product portfolio to established global consumer companies and physicians and target large and growing consumer health and wellness markets. The Company’s clinically-validated products include bio-functional lipid-based compounds designed to address dietary needs, medical disorders and common diseases.

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