Analyzing Crawford United (OTCMKTS:CRAWA) and Broadwind Energy (NASDAQ:BWEN)

Crawford United (OTCMKTS:CRAWA) and Broadwind Energy (NASDAQ:BWEN) are both small-cap industrials companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, institutional ownership, earnings, risk and valuation.

Profitability

This table compares Crawford United and Broadwind Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Crawford United	10.08%	22.40%	13.94%
Broadwind Energy	3.30%	-2.05%	-1.09%

Institutional & Insider Ownership

0.1% of Crawford United shares are held by institutional investors. Comparatively, 33.3% of Broadwind Energy shares are held by institutional investors. 37.9% of Crawford United shares are held by company insiders. Comparatively, 6.1% of Broadwind Energy shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility and Risk

Crawford United has a beta of 0.79, meaning that its share price is 21% less volatile than the S&P 500. Comparatively, Broadwind Energy has a beta of 1.73, meaning that its share price is 73% more volatile than the S&P 500.

Valuation and Earnings

This table compares Crawford United and Broadwind Energy”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Crawford United	$150.20 million	1.95	$13.60 million	$4.95	16.65
Broadwind Energy	$158.05 million	0.56	$5.24 million	$0.22	17.09

Crawford United has higher earnings, but lower revenue than Broadwind Energy. Crawford United is trading at a lower price-to-earnings ratio than Broadwind Energy, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings for Crawford United and Broadwind Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Crawford United	0	0	0	0	0.00
Broadwind Energy	0	2	1	0	2.33

Broadwind Energy has a consensus target price of $6.00, indicating a potential upside of 59.57%. Given Broadwind Energy’s stronger consensus rating and higher possible upside, analysts clearly believe Broadwind Energy is more favorable than Crawford United.

About Crawford United

Crawford United Corporation, together with its subsidiaries, provides specialty industrial products in the United States, Puerto Rico, Mexico, Canada, and internationally. It operates through two segments: Commercial Air Handling Equipment; and Industrial and Transportation Products. The Commercial Air Handling segment designs, manufactures, and installs large-scale commercial, institutional, and industrial custom air handling solutions to health care, education, pharmaceutical, and industrial manufacturing markets under the FactoryBilt and SiteBilt brand names. The Industrial and Transportation Products segment is involved in the manufacture of flexible interlocking metal hoses primarily to heavy-duty truck manufacturers and aftermarket suppliers, as well as to the agricultural, industrial, and petrochemical markets; and distribution of silicone and hydraulic hoses to the agriculture and general industrial markets. It also provides engineering, machining, grinding, welding, brazing, heat treat, and assembly solutions; rubber and plastic marine hose for the recreational boating industry; engineered manufacturing solutions, including CNC machining, anodizing, electro polishing, and laser marking for defense, aerospace, and medical device markets; and hydraulic hoses, air tank assemblies, and related products to manufacturers of firefighting trucks and other emergency vehicles. In addition, the company engages in the supply of highly engineered forgings for the aerospace, industrial gas turbine, medical prosthetics, alternative energy, petrochemical, and defense industries; and developing and commercializing marketing and data analytic technology applications. The company was formerly known as Hickok Incorporated and changed its name to Crawford United Corporation in May 2019. Crawford United Corporation was founded in 1910 and is headquartered in Cleveland, Ohio.

About Broadwind Energy

Broadwind, Inc. manufactures and sells structures, equipment, and components for clean tech and other specialized applications primarily in the United States. It operates through three segments: Heavy Fabrications, Gearing, and Industrial Solutions. The Heavy Fabrications segment provides fabrications to various industrial markets. It offers steel towers and adapters primarily to wind turbine manufacturers. Its Gearing segment provides gearing, gearboxes, and precision machined components to a range of customers in diverse markets, including surface and underground mining, wind energy, steel, material handling, infrastructure, onshore and offshore oil and gas fracking and drilling, marine, and other industrial markets. This segment also offers heat treat services for aftermarket and original equipment manufacturer applications. The Industrial Solutions segment provides supply chain solutions for offering instrumentation and controls, valve assemblies, sensor devices, fuel system components, electrical junction boxes and wiring, energy storage services, and electromechanical devices; light fabrication, inventory management, and kitting and assembly services; packaging solutions; and supply chain solutions, light fabrication, inventory management, and kitting and assembly services for combined cycle natural gas turbine market. It sells its products to the energy, mining, and infrastructure sectors through its direct sales force and independent sales agents. The company was formerly known as Broadwind Energy, Inc. and changed its name to Broadwind, Inc. in May 2020. Broadwind, Inc. is headquartered in Cicero, Illinois.