Analyzing Huadi International Group (NASDAQ:HUDI) & Carpenter Technology (NYSE:CRS)

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

Institutional & Insider Ownership

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

Risk & Volatility

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Huadi International Group and Carpenter Technology, as reported by MarketBeat.

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

Carpenter Technology has a consensus price target of $438.78, indicating a potential upside of 7.40%. Given Carpenter Technology’s stronger consensus rating and higher possible upside, analysts plainly believe Carpenter Technology is more favorable than Huadi International Group.

Valuation and Earnings

This table compares Huadi International Group and Carpenter Technology”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	$62.49 million	0.28	-$1.40 million	N/A	N/A
Carpenter Technology	$2.88 billion	7.06	$376.00 million	$9.50	43.01

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

Profitability

This table compares Huadi International Group and Carpenter Technology’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
Carpenter Technology	15.82%	25.02%	13.96%

Summary

Carpenter Technology beats Huadi International Group on 10 of the 12 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 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.