Head to Head Contrast: GrafTech International (NYSE:EAF) vs. Techprecision (NASDAQ:TPCS)

GrafTech International (NYSE:EAF) and Techprecision (NASDAQ:TPCS) are both small-cap industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, institutional ownership, profitability, valuation, analyst recommendations, risk and earnings.

Earnings & Valuation

This table compares GrafTech International and Techprecision”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GrafTech International	$538.78 million	0.50	-$131.16 million	($0.82)	-1.26
Techprecision	$34.03 million	1.52	-$2.75 million	($0.19)	-27.34

Techprecision has lower revenue, but higher earnings than GrafTech International. Techprecision is trading at a lower price-to-earnings ratio than GrafTech International, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

GrafTech International has a beta of 1.63, meaning that its stock price is 63% more volatile than the S&P 500. Comparatively, Techprecision has a beta of 0.25, meaning that its stock price is 75% less volatile than the S&P 500.

Institutional and Insider Ownership

92.8% of GrafTech International shares are owned by institutional investors. Comparatively, 15.5% of Techprecision shares are owned by institutional investors. 1.0% of GrafTech International shares are owned by insiders. Comparatively, 15.4% of Techprecision shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations and price targets for GrafTech International and Techprecision, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GrafTech International	0	6	0	0	2.00
Techprecision	0	0	0	0	0.00

GrafTech International presently has a consensus price target of $1.63, indicating a potential upside of 57.00%. Given GrafTech International’s stronger consensus rating and higher probable upside, equities analysts plainly believe GrafTech International is more favorable than Techprecision.

Profitability

This table compares GrafTech International and Techprecision’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GrafTech International	-41.64%	N/A	-12.27%
Techprecision	-5.64%	-22.22%	-5.68%

Summary

GrafTech International beats Techprecision on 7 of the 13 factors compared between the two stocks.

About GrafTech International

GrafTech International Ltd. research, develops, manufactures, and sells graphite and carbon-based solutions worldwide. The company offers graphite electrodes to produce electric arc furnace steel and other ferrous and non-ferrous metals; and petroleum needle coke, a crystalline form of carbon used in the production of graphite electrodes and synthetic graphite. It sells its products primarily through direct sales force, independent sales representatives, and distributors. GrafTech International Ltd. was founded in 1886 and is headquartered in Brooklyn Heights, Ohio.

About Techprecision

TechPrecision Corporation, together with its subsidiaries, manufactures and sells precision, fabricated, and machined metal structural components and systems in the United States. The company operates through two segments, Ranor and Stadco. It provides custom components for ships, submarines, military helicopters, aerospace equipment, components for nuclear power plants, and components for medical systems. The company also provides support services to its manufacturing capabilities comprising manufacturing engineering, quality control, materials procurement, production control, and final assembly. Its finished products are used various markets, including defense, aerospace, nuclear, medical, and precision industrial. The company was founded in 1956 and is headquartered in Westminster, Massachusetts.