Santacruz Silver Mining (NASDAQ:SCZM) and Huadi International Group (NASDAQ:HUDI) Critical Analysis

Santacruz Silver Mining (NASDAQ:SCZM) and Huadi International Group (NASDAQ:HUDI) are both small-cap materials companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, profitability, valuation, institutional ownership and risk.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Santacruz Silver Mining and Huadi International Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Santacruz Silver Mining	0	2	1	0	2.33
Huadi International Group	1	0	0	0	1.00

Santacruz Silver Mining presently has a consensus target price of $10.00, indicating a potential downside of 3.29%. Given Santacruz Silver Mining’s stronger consensus rating and higher possible upside, analysts plainly believe Santacruz Silver Mining is more favorable than Huadi International Group.

Valuation & Earnings

This table compares Santacruz Silver Mining and Huadi 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
Santacruz Silver Mining	$326.38 million	2.94	$42.22 million	$0.32	32.31
Huadi International Group	$62.49 million	0.20	-$1.40 million	N/A	N/A

Santacruz Silver Mining has higher revenue and earnings than Huadi International Group.

Institutional and Insider Ownership

0.2% of Huadi International Group shares are held by institutional investors. 75.5% of Huadi International Group shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Santacruz Silver Mining	9.97%	21.55%	9.49%
Huadi International Group	N/A	N/A	N/A

Summary

Santacruz Silver Mining beats Huadi International Group on 9 of the 11 factors compared between the two stocks.

About Santacruz Silver Mining

Santacruz Silver Mining Ltd., together with its subsidiaries, engages in the acquisition, exploration, development, and operation of mineral properties in Mexico. The company primarily explores for silver, as well as for gold, zinc, lead, and copper deposits. It primarily holds a 100% interest in the Rosario project located in the municipality of Charcas in the state of San Luis Potosi; and Veta Grande project that include three concession groups, which consists of 184 mining concessions covering an area of 8,944 hectares in the Zacatecas Mining District, Mexico. The company was formerly known as Forte Resources Inc. and changed its name to Santacruz Silver Mining Ltd. in April 2012. Santacruz Silver Mining Ltd. Was incorporated in 2011 and is based in Vancouver, Canada.

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.