Critical Contrast: Huadi International Group (NASDAQ:HUDI) and Carpenter Technology (NYSE:CRS)

Carpenter Technology (NYSE:CRS) and Huadi International Group (NASDAQ:HUDI) are both basic materials companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, analyst recommendations, earnings, valuation, institutional ownership, dividends and profitability.

Analyst Ratings

This is a summary of recent recommendations for Carpenter Technology and Huadi International Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Carpenter Technology	0	2	9	0	2.82
Huadi International Group	1	0	0	0	1.00

Carpenter Technology currently has a consensus target price of $435.33, suggesting a potential upside of 1.13%. Given Carpenter Technology’s stronger consensus rating and higher probable upside, equities analysts clearly believe Carpenter Technology is more favorable than Huadi International Group.

Profitability

This table compares Carpenter Technology and Huadi International Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Carpenter Technology	15.82%	25.02%	13.96%
Huadi International Group	N/A	N/A	N/A

Earnings and Valuation

This table compares Carpenter Technology and Huadi International Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Carpenter Technology	$3.03 billion	7.08	$376.00 million	$9.50	45.31
Huadi International Group	$62.49 million	0.27	-$1.40 million	N/A	N/A

Carpenter Technology has higher revenue and earnings than Huadi International Group.

Institutional and Insider Ownership

92.0% of Carpenter Technology shares are held by institutional investors. Comparatively, 0.2% of Huadi International Group shares are held by institutional investors. 2.9% of Carpenter Technology shares are held by insiders. Comparatively, 75.6% of Huadi International Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

Carpenter Technology has a beta of 1.24, indicating that its share price is 24% more volatile than the S&P 500. Comparatively, Huadi International Group has a beta of 1.99, indicating that its share price is 99% more volatile than the S&P 500.

Summary

Carpenter Technology beats Huadi International Group on 10 of the 12 factors compared between the two stocks.

About Carpenter Technology

Carpenter Technology Corporation engages in the manufacture, fabrication, and distribution of specialty metals in the United States, Europe, the Asia Pacific, Mexico, Canada, and internationally. It operates in two segments, Specialty Alloys Operations and Performance Engineered Products. The company offers specialty alloys, including titanium alloys, powder metals, stainless steels, alloy steels, and tool steels, as well as additives, and metal powders and parts. It serves to aerospace, defense, medical, transportation, energy, industrial, and consumer markets. The company was founded in 1889 and is headquartered in Philadelphia, Pennsylvania.

About Huadi International Group

Huadi International Group Co., Ltd. manufactures and sells industrial stainless steel seamless pipes and tubes in the People's Republic of China. The company's products are used in the oil and gas transmission, chemistry engineering, food processing, medical devices, aeronautics and astronautics, boiler, irrigation works construction, electricity, automobile, naval architecture, paper mill, and mechanical industries. It also exports its products to 20 countries, including the United States, Mexico, Thailand, Australia, Argentina, India, the Philippines, the United Arab Emirates, Taiwan, Canada, and internationally. The company was founded in 1992 and is based in Wenzhou, the People's Republic of China.