Comparing UFP Technologies (UFPT) and Advanced Drainage Systems (WMS)

UFP Technologies (NASDAQ: UFPT) and Advanced Drainage Systems (NYSE:WMS) are both small-cap industrial products companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, institutional ownership, profitability, dividends, analyst recommendations and valuation.

Valuation & Earnings

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This table compares UFP Technologies and Advanced Drainage Systems’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
UFP Technologies $147.84 million 1.46 $9.21 million $1.25 23.60
Advanced Drainage Systems $1.26 billion 1.16 $32.95 million $0.50 51.80

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

Volatility and Risk

UFP Technologies has a beta of 0.16, indicating that its stock price is 84% less volatile than the S&P 500. Comparatively, Advanced Drainage Systems has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for UFP Technologies and Advanced Drainage Systems, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
UFP Technologies 0 0 0 0 N/A
Advanced Drainage Systems 0 4 1 0 2.20

Advanced Drainage Systems has a consensus target price of $26.25, suggesting a potential upside of 1.35%. Given Advanced Drainage Systems’ higher possible upside, analysts clearly believe Advanced Drainage Systems is more favorable than UFP Technologies.

Profitability

This table compares UFP Technologies and Advanced Drainage Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
UFP Technologies 6.23% 7.70% 6.82%
Advanced Drainage Systems 3.67% 45.42% 3.58%

Dividends

Advanced Drainage Systems pays an annual dividend of $0.28 per share and has a dividend yield of 1.1%. UFP Technologies does not pay a dividend. Advanced Drainage Systems pays out 56.0% of its earnings in the form of a dividend. Advanced Drainage Systems has increased its dividend for 2 consecutive years.

Insider & Institutional Ownership

69.3% of UFP Technologies shares are held by institutional investors. Comparatively, 79.5% of Advanced Drainage Systems shares are held by institutional investors. 13.3% of UFP Technologies shares are held by company insiders. Comparatively, 21.4% of Advanced Drainage Systems shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Advanced Drainage Systems beats UFP Technologies on 11 of the 16 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.

Advanced Drainage Systems Company Profile

Advanced Drainage Systems, Inc. is engaged in designing, manufacturing and marketing of thermoplastic corrugated pipe and related water management products, primarily in North and South America, and Europe. The Company operates through two segments: Domestic and International. The Domestic segment manufactures and markets products throughout the United States. The International segment manufactures and markets products in certain regions outside of the United States, with a focus on its owned facilities in Canada and through its joint ventures with local partners in Mexico, Central America and South America. Its product line includes corrugated high density polyethylene (HDPE) pipe, polypropylene (PP) pipe and related water management products. Its products are used across a range of end markets and applications, including non-residential, residential, agriculture and infrastructure applications.

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