CSW Industrials (CSWI) versus UFP Technologies (NASDAQ:UFPT) Critical Contrast

UFP Technologies (NASDAQ: UFPT) and CSW Industrials (NASDAQ:CSWI) are both small-cap industrial products companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, profitability, risk, analyst recommendations, dividends, earnings and institutional ownership.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for UFP Technologies and CSW Industrials, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
UFP Technologies 0 0 0 0 N/A
CSW Industrials 0 0 2 0 3.00

CSW Industrials has a consensus target price of $60.00, indicating a potential upside of 32.01%. Given CSW Industrials’ higher possible upside, analysts clearly believe CSW Industrials is more favorable than UFP Technologies.

Profitability

This table compares UFP Technologies and CSW Industrials’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
UFP Technologies 5.43% 6.83% 6.03%
CSW Industrials 5.39% 10.77% 7.66%

Risk and Volatility

UFP Technologies has a beta of 0.18, suggesting that its share price is 82% less volatile than the S&P 500. Comparatively, CSW Industrials has a beta of 1.45, suggesting that its share price is 45% more volatile than the S&P 500.

Valuation & Earnings

This table compares UFP Technologies and CSW Industrials’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
UFP Technologies $146.13 million 1.30 $7.97 million $1.09 23.99
CSW Industrials $327.08 million 2.22 $11.07 million $1.20 37.88

CSW Industrials has higher revenue and earnings than UFP Technologies. UFP Technologies is trading at a lower price-to-earnings ratio than CSW Industrials, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

68.6% of UFP Technologies shares are owned by institutional investors. Comparatively, 68.0% of CSW Industrials shares are owned by institutional investors. 13.3% of UFP Technologies shares are owned by company insiders. Comparatively, 2.1% of CSW Industrials shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

CSW Industrials beats UFP Technologies on 10 of the 13 factors compared between the two stocks.

UFP Technologies Company Profile

UFP Technologies, Inc. is a designer and custom converter of foams, plastics, composites and natural fiber materials. The Company is engaged in providing solutions to customers primarily within the medical, automotive, consumer, electronics, industrial, and aerospace and defense markets. It converts these materials using laminating, molding, and fabricating manufacturing technologies. The Company’s raw materials consist of polyethylene and polyurethane foams, sheet plastics, pulp fiber, cross-linked polyethylene and reticulated polyurethane foams, fabric and foam laminates, and natural fiber materials. The Company converts these materials to provide customers various solutions, including automotive interior trim, medical device components, disposable wound care components, military uniform and gear components, athletic padding, air filtration, high-temperature insulation, abrasive nail files and other beauty aids, and cushion packaging for their products.

CSW Industrials Company Profile

CSW Industrials, Inc. (CSWI) is a diversified industrial growth company. The Company operates through three segments: Industrial Products; Coatings, Sealants & Adhesives, and Specialty Chemicals. The Industrial Products segment consists of specialty mechanical products; fire and smoke protection products; architecturally specified building products, and storage, filtration and application equipment. The Coatings, Sealants & Adhesives segment comprises coatings and penetrants, pipe thread sealants, firestopping sealants, and caulks and adhesives/solvent cements. The Specialty Chemicals segment manufactures and supplies specialized consumables that impart or enhance properties, such as lubricity, anti-seize qualities, friction and heat control. Markets that it serves include HVAC, industrial, rail, plumbing, architecturally specified building products, energy, mining and other general industrial markets.

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