Head-To-Head Review: Handy & Harman (HNH) and Universal Stainless & Alloy Products (USAP)
Handy & Harman (NASDAQ: HNH) and Universal Stainless & Alloy Products (NASDAQ:USAP) are both small-cap iron, steel mills & foundries companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, earnings, risk, dividends, profitability and analyst recommendations.
Institutional and Insider Ownership
88.2% of Handy & Harman shares are held by institutional investors. Comparatively, 85.6% of Universal Stainless & Alloy Products shares are held by institutional investors. 6.1% of Handy & Harman shares are held by insiders. Comparatively, 11.6% of Universal Stainless & Alloy Products shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This is a summary of current ratings for Handy & Harman and Universal Stainless & Alloy Products, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Handy & Harman||0||0||0||0||N/A|
|Universal Stainless & Alloy Products||0||1||2||0||2.67|
Universal Stainless & Alloy Products has a consensus target price of $19.00, suggesting a potential downside of 11.30%. Given Universal Stainless & Alloy Products’ higher possible upside, analysts clearly believe Universal Stainless & Alloy Products is more favorable than Handy & Harman.
This table compares Handy & Harman and Universal Stainless & Alloy Products’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Handy & Harman||5.07%||27.77%||6.04%|
|Universal Stainless & Alloy Products||-1.08%||-0.53%||-0.32%|
Valuation & Earnings
This table compares Handy & Harman and Universal Stainless & Alloy Products’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Handy & Harman||N/A||N/A||N/A||$0.71||42.68|
|Universal Stainless & Alloy Products||$154.43 million||1.00||-$5.34 million||($0.26)||-82.38|
Handy & Harman has higher earnings, but lower revenue than Universal Stainless & Alloy Products. Universal Stainless & Alloy Products is trading at a lower price-to-earnings ratio than Handy & Harman, indicating that it is currently the more affordable of the two stocks.
Handy & Harman beats Universal Stainless & Alloy Products on 6 of the 10 factors compared between the two stocks.
Handy & Harman Company Profile
Handy & Harman Ltd. is a holding company. The Company, through its subsidiaries, is a diversified manufacturer of engineered industrial products. The Company’s segments include Joining Materials, Tubing, Building Materials, Performance Materials, Electrical Products, and Kasco Blades and Route Repair Services (Kasco). Joining Materials fabricates precious metals and their alloys into brazing alloys. Tubing manufactures a range of steel tubing products. Building Materials manufactures and supplies products to the commercial construction and building industries. Performance Materials manufactures sheet and mechanically formed glass manufactures sheet and mechanically formed glass, quartz, carbon and aramid materials. Electrical Products segment designs, manufactures and markets power electronics and power protection, among others. Kasco provides meat-room blade products, repair services and resale products for the meat and deli departments of supermarkets and restaurants, among others.
Universal Stainless & Alloy Products Company Profile
Universal Stainless & Alloy Products, Inc. manufactures and markets semi-finished and finished specialty steel products, including stainless steel, nickel alloys, tool steel and certain other alloyed steels. The Company’s manufacturing process involves melting, remelting, heat treating, hot and cold rolling, forging, machining and cold drawing of semi-finished and finished specialty steels. The Company also performs conversion services on materials supplied by customers. The Company’s manufacturing locations include Bridgeville and Titusville, Pennsylvania; Dunkirk, New York, and North Jackson, Ohio. The Company produce a range of specialty steel grades using several manufacturing processes, including argon oxygen decarburization (AOD), electro-slag remelted (ESR), vacuum induction melting (VIM) and vacuum-arc remelted (VAR). It manufactures its products within the product lines, including Stainless Steel, High-Strength Low Alloy Steel, Tool Steel and High-Temperature Alloy Steel.
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