Critical Survey: Insteel Industries (IIIN) & Haynes International (HAYN)

Insteel Industries (NASDAQ: IIIN) and Haynes International (NASDAQ:HAYN) are both small-cap industrial products companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, dividends, profitability, valuation, institutional ownership and earnings.

Valuation & Earnings

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This table compares Insteel Industries and Haynes International’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Insteel Industries $388.87 million 1.35 $22.54 million N/A N/A
Haynes International $395.21 million 1.18 -$10.19 million ($0.78) -47.58

Insteel Industries has higher earnings, but lower revenue than Haynes International.

Volatility and Risk

Insteel Industries has a beta of 2.02, indicating that its stock price is 102% more volatile than the S&P 500. Comparatively, Haynes International has a beta of 1.37, indicating that its stock price is 37% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Insteel Industries and Haynes International, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Insteel Industries 0 2 0 0 2.00
Haynes International 0 1 2 0 2.67

Insteel Industries currently has a consensus target price of $34.00, suggesting a potential upside of 23.05%. Haynes International has a consensus target price of $36.50, suggesting a potential downside of 1.64%. Given Insteel Industries’ higher probable upside, analysts clearly believe Insteel Industries is more favorable than Haynes International.

Profitability

This table compares Insteel Industries and Haynes International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Insteel Industries 6.67% 10.13% 7.77%
Haynes International -8.18% -3.76% -1.88%

Institutional & Insider Ownership

83.6% of Insteel Industries shares are held by institutional investors. Comparatively, 98.6% of Haynes International shares are held by institutional investors. 5.7% of Insteel Industries shares are held by insiders. Comparatively, 4.6% of Haynes International 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.

Dividends

Insteel Industries pays an annual dividend of $0.12 per share and has a dividend yield of 0.4%. Haynes International pays an annual dividend of $0.88 per share and has a dividend yield of 2.4%. Haynes International pays out -112.8% of its earnings in the form of a dividend.

Summary

Insteel Industries beats Haynes International on 8 of the 14 factors compared between the two stocks.

Insteel Industries Company Profile

Insteel Industries, Inc. is a manufacturer of steel wire reinforcing products for concrete construction applications. The Company’s operations are focused on the manufacture and marketing of steel wire reinforcing products for concrete construction applications. Its concrete reinforcing products consist of two product lines: prestressed concrete strand (PC strand) and welded wire reinforcement (WWR). PC strand is a seven-wire strand that is used to impart compression forces into precast concrete elements and structures, providing reinforcement for bridges, parking decks, buildings and other concrete structures. WWR is produced as an engineered reinforcing product for use in nonresidential and residential construction. Its products are sold primarily to manufacturers of concrete products that are used in nonresidential construction. The Company sells its products nationwide across the United States, Canada, Mexico, and Central and South America.

Haynes International Company Profile

Haynes International, Inc. develops, manufactures, markets, and distributes nickel and cobalt-based alloys in sheet, coil, and plate forms in the United States, Europe, Asia, and internationally. The company offers high-temperature resistant alloys (HTA) and corrosion-resistant alloys (CRA). Its HTA products are used by manufacturers of equipment, including jet engines for the aerospace market; gas turbine engines for power generation and waste incineration; and industrial heating equipment. The company's CRA products are used in various applications, such as chemical processing, power plant emissions control, and hazardous waste treatment. Its products also have applications in flue-gas desulfurization, oil and gas, waste incineration, industrial heat treating, automotive, instrumentation, biopharmaceuticals, and solar and nuclear fuel industries. In addition, the company produces products as seamless and welded tubulars, as well as in slab, bar, billet, and wire forms. It sells its products primarily through direct sales organizations, and network of independent distributors and sales agents. Haynes International, Inc. was founded in 1912 and is headquartered in Kokomo, Indiana.

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