WSI Industries (NASDAQ:WSCI) and P & F Industries (NASDAQ:PFIN) are both small-cap industrial products companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, analyst recommendations, dividends, institutional ownership and profitability.

Profitability

This table compares WSI Industries and P & F Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
WSI Industries 2.45% 4.03% 2.20%
P & F Industries 0.10% 1.51% 1.24%

Insider & Institutional Ownership

9.1% of WSI Industries shares are held by institutional investors. Comparatively, 14.0% of P & F Industries shares are held by institutional investors. 9.5% of WSI Industries shares are held by company insiders. Comparatively, 39.6% of P & F Industries shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Dividends

WSI Industries pays an annual dividend of $0.16 per share and has a dividend yield of 2.3%. P & F Industries pays an annual dividend of $0.20 per share and has a dividend yield of 2.4%.

Volatility & Risk

WSI Industries has a beta of 0.16, indicating that its stock price is 84% less volatile than the S&P 500. Comparatively, P & F Industries has a beta of -0.05, indicating that its stock price is 105% less volatile than the S&P 500.

Earnings and Valuation

This table compares WSI Industries and P & F Industries’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
WSI Industries $34.60 million 0.60 $850,000.00 N/A N/A
P & F Industries $58.97 million 0.51 -$880,000.00 N/A N/A

WSI Industries has higher earnings, but lower revenue than P & F Industries.

Analyst Ratings

This is a breakdown of current ratings and target prices for WSI Industries and P & F Industries, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WSI Industries 0 0 0 0 N/A
P & F Industries 0 0 0 0 N/A

Summary

WSI Industries beats P & F Industries on 6 of the 11 factors compared between the two stocks.

About WSI Industries

WSI Industries, Inc. engages in the precision contract metal machining business in the United States. It manufactures metal components in medium to high volumes in accordance with customer specifications. The company serves aerospace/avionics/defense industries, recreational power sports vehicles, markets, energy industry, automotive industry, and bioscience industry. WSI Industries, Inc. was founded in 1950 and is headquartered in Monticello, Minnesota.

About P & F Industries

P&F Industries, Inc., through its subsidiaries, manufactures, imports, and sells air-powered tools and accessories primarily to the retail, industrial, and automotive markets in the United States and internationally. The company designs, imports, and sells pneumatic hand tools, including sanders, grinders, drills, saws, and impact wrenches under the Florida Pneumatic, Universal Tool, AIRCAT, and NITROCAT names through in-house sales personnel and manufacturers' representatives to retailers, distributors, and private label customers. It also markets pipes and bolt dies, pipe taps, wrenches, vises and stands, pipes and tubing cutting equipment, hydrostatic test pumps, and replacement electrical components for pipe cutting and threading machines through industrial distributors and contractors, as well as assembles and markets a line of compressor air filters. In addition, the company designs, manufactures, and distributes industrial pneumatic tools, such as heavy duty air tools, industrial grinders, impact sockets, hydro-pneumatic riveters, and air motors and custom gears; and industrial gears, hydrostatic test plugs, and various parts for use in power generation, petrochemical, construction, railroad, mining, ship building, and fabricated metals industries under the ATP ATSCO, OZAT, Numatx, Thaxton, and Quality Gear brands, as well as manufactures components, assemblies, and finished product and systems for various original equipment manufacturers. P&F Industries, Inc. was founded in 1959 and is based in Melville, New York.

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