Head to Head Comparison: Lihua International (LIWA) vs. Kaiser Aluminum (KALU)

Lihua International (OTCMKTS:LIWA) and Kaiser Aluminum (NASDAQ:KALU) are both small-cap industrial products companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, earnings, profitability, risk and valuation.

Profitability

This table compares Lihua International and Kaiser Aluminum’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lihua International N/A N/A N/A
Kaiser Aluminum 3.41% 13.23% 7.09%

Dividends

Kaiser Aluminum pays an annual dividend of $2.20 per share and has a dividend yield of 2.4%. Lihua International does not pay a dividend. Kaiser Aluminum pays out 43.2% of its earnings in the form of a dividend. Kaiser Aluminum has increased its dividend for 6 consecutive years.

Risk and Volatility

Lihua International has a beta of 0.46, indicating that its share price is 54% less volatile than the S&P 500. Comparatively, Kaiser Aluminum has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500.

Institutional and Insider Ownership

99.3% of Kaiser Aluminum shares are held by institutional investors. 44.9% of Lihua International shares are held by company insiders. Comparatively, 3.2% of Kaiser Aluminum shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Lihua International and Kaiser Aluminum’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Lihua International N/A N/A N/A N/A N/A
Kaiser Aluminum $1.40 billion 1.09 $45.40 million $5.09 18.06

Kaiser Aluminum has higher revenue and earnings than Lihua International.

Analyst Ratings

This is a summary of recent recommendations for Lihua International and Kaiser Aluminum, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lihua International 0 0 0 0 N/A
Kaiser Aluminum 1 5 1 0 2.00

Kaiser Aluminum has a consensus price target of $105.29, indicating a potential upside of 14.50%. Given Kaiser Aluminum’s higher possible upside, analysts clearly believe Kaiser Aluminum is more favorable than Lihua International.

Summary

Kaiser Aluminum beats Lihua International on 10 of the 12 factors compared between the two stocks.

About Lihua International

Lihua International, Inc., through its subsidiaries, produces copper replacement in the People's Republic of China. It designs, develops, manufactures, markets, and distributes refined copper products, including copper anode, copper rod, fine and superfine pure copper wire, and copper-clad aluminum (CCA) fine and superfine wires. Its copper rod based wire products comprise cable products used for telephone drop wires and conductors; electric utilities; transmission lines, grid wires, fences, and structured grounds; industrial drop wires, magnet wires, battery cables, and automotive wiring harnesses; and radio frequency shielding, as well as magnet wire products used in electronic motors, transformers, water pumps, automobile meters, energy, industrial, commercial, and residential industries. The company produces and distributes copper and CCA wire products in various forms, including fine wires to smaller wire manufacturers for further processing; magnet wires used for electrical conductivity in a range of motorized appliances; and tin plated wires for the transmission of audio and visual signals. Lihua International, Inc. manufactures and sells copper anode to copper entities, which produce and sell copper cathode to copper products manufacturers. The company sells its products directly to manufacturers or through distributors in the wire and cable industries, as well as through manufacturers in the consumer electronics, audio and visual equipment, white goods, automotive, utility, telecommunications, and specialty cable industries. The company was founded in 1999 and is headquartered in Danyang, the People's Republic of China.

About Kaiser Aluminum

Kaiser Aluminum Corporation manufactures and sells semi-fabricated specialty aluminum mill products. The company offers rolled, extruded, and drawn aluminum products used principally for aerospace and defense, automotive, consumer durables, electronics, electrical, and machinery and equipment applications. Its aerospace and high strength products include heat treat plates and sheets, hard alloy extruded shapes, cold finish rods and bars, seamless drawn tubes, and billets for aerospace and defense industries. The company's automotive extrusions include extruded aluminum products for structural components, bumper systems, anti-lock braking systems, and drawn tubes for drive shafts in the automobile industry. Its general engineering products comprise alloy plate, sheet, rod, bar, tube, wire, and standard extrusion shapes used in various applications, including the production of military vehicles, ordnances, semiconductor manufacturing cells, electronic devices, after-market motor sport parts, tooling plates, parts for machinery and equipment, bolts, screws, nails, and rivets. The company also offers extruded, drawn, and cast billet aluminum products for industrial end uses. It sells its products directly to customers through sales personnel located in the United States, Canada, Europe, and China, as well as through independent sales agents in other regions of Asia, Latin America, and the Middle East. Kaiser Aluminum Corporation was founded in 1946 and is headquartered in Foothill Ranch, California.

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