Financial Contrast: DNOW (NYSE:DNOW) and HUHUTECH International Group (NASDAQ:HUHU)

DNOW (NYSE:DNOW) and HUHUTECH International Group (NASDAQ:HUHU) are both small-cap industrials companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, dividends, valuation and analyst recommendations.

Analyst Recommendations

This is a summary of recent recommendations for DNOW and HUHUTECH International Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DNOW	0	1	2	1	3.00
HUHUTECH International Group	1	0	0	0	1.00

DNOW currently has a consensus price target of $17.67, indicating a potential upside of 22.73%. Given DNOW’s stronger consensus rating and higher probable upside, equities research analysts plainly believe DNOW is more favorable than HUHUTECH International Group.

Institutional & Insider Ownership

97.6% of DNOW shares are held by institutional investors. 2.7% of DNOW shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares DNOW and HUHUTECH International Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DNOW	3.91%	9.35%	6.55%
HUHUTECH International Group	N/A	N/A	N/A

Valuation & Earnings

This table compares DNOW and HUHUTECH International Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DNOW	$2.37 billion	0.64	$81.00 million	$0.87	16.55
HUHUTECH International Group	$18.15 million	10.61	-$1.93 million	N/A	N/A

DNOW has higher revenue and earnings than HUHUTECH International Group.

Volatility and Risk

DNOW has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500. Comparatively, HUHUTECH International Group has a beta of -1.44, indicating that its share price is 244% less volatile than the S&P 500.

Summary

DNOW beats HUHUTECH International Group on 12 of the 13 factors compared between the two stocks.

About DNOW

DNOW Inc. distributes downstream energy and industrial products for petroleum refining, chemical processing, LNG terminals, power generation utilities, and customer on-site locations in the United States, Canada, and internationally. The company provides consumable maintenance, repair, and operating supplies; pipes, manual and automated valves, fittings, flanges, gaskets, fasteners, electrical instrumentations, artificial lift, pumping solutions, valve actuation and modular process, and measurement and control equipment; and mill supplies, tools, safety supplies, and personal protective equipment, as well as artificial lift systems, coatings, and miscellaneous expendable items. It also offers original equipment manufacturer equipment, including pumps, generator sets, air compressors, dryers, blowers, mixers, and valves; modular oil and gas tank battery solutions; and application systems, work processes, parts integration, optimization solutions, and after-sales support services. In addition, the company provides supply chain and materials management; inventory planning and management, procurement, and warehouse management, as well as solutions for logistics, point of issue technology, project management, business process, and performance metrics reporting services. It serves customers in the upstream, midstream, and downstream sectors of the energy industry, including drilling contractors, well-servicing companies, independent and national oil and gas companies, midstream operators, and refineries, as well as petrochemical, chemical, utilities, RNG facilities, and other downstream energy processors; and industrial and manufacturing companies. The company was formerly known as NOW Inc. and changed its name to DNOW Inc. in January 2024. DNOW Inc. was founded in 1862 and is headquartered in Houston, Texas.

About HUHUTECH International Group

HUHUTECH International Group, Inc. designs and provides customized high-purity gas and chemical production system and equipment. The company was founded by Yu Jun Xiao on July 8, 2021 and is headquartered in Wuxi City, China.