Head to Head Survey: ATI (NYSE:ATI) versus Huadi International Group (NASDAQ:HUDI)

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Huadi International Group and ATI, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Huadi International Group	1	0	0	0	1.00
ATI	0	1	9	1	3.00

ATI has a consensus target price of $164.38, indicating a potential upside of 6.53%. Given ATI’s stronger consensus rating and higher possible upside, analysts clearly believe ATI is more favorable than Huadi International Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Huadi International Group	N/A	N/A	N/A
ATI	9.26%	26.44%	9.72%

Insider & Institutional Ownership

0.2% of Huadi International Group shares are held by institutional investors. 75.6% of Huadi International Group shares are held by company insiders. Comparatively, 1.0% of ATI shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Huadi International Group	$62.90 million	0.28	-$1.40 million	N/A	N/A
ATI	$4.59 billion	4.59	$404.30 million	$3.02	51.09

ATI has higher revenue and earnings than Huadi International Group.

Volatility and Risk

Huadi International Group has a beta of 1.99, indicating that its stock price is 99% more volatile than the S&P 500. Comparatively, ATI has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500.

Summary

ATI beats Huadi International Group on 10 of the 13 factors compared between the two stocks.

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.

About ATI

ATI Inc. produces and sells specialty materials and complex components worldwide. It operates in two segments: High Performance Materials & Components (HPMC) and Advanced Alloys & Solutions (AA&S). The HPMC segment produces various materials, including titanium and titanium-based alloys, nickel- and cobalt-based alloys and superalloys, metallic powder alloys, advanced powder alloys and other specialty materials, in long product forms, such as ingot, billet, bar, rod, wire, shapes and rectangles, and seamless tubes, as well as precision forgings, components, and machined parts. The AA&S segment produces zirconium and related alloys, including hafnium and niobium, nickel-based alloys, titanium and titanium-based alloys, and specialty alloys in a variety of forms, such as plate, sheet, and precision rolled strip products. It also provides hot-rolling conversion services, including carbon steel products. ATI Inc. serves to aerospace and defense, energy, automotive, construction and mining, food equipment and appliances, and medical markets. The company was formerly known as Allegheny Technologies Incorporated. ATI Inc. was incorporated in 1996 and is headquartered in Dallas, Texas.