Critical Comparison: UFP Technologies (UFPT) and Verenium (VRNM)
UFP Technologies (NASDAQ: UFPT) and Verenium (NASDAQ:VRNM) are both small-cap industrial products companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, dividends, risk, profitability, analyst recommendations, earnings and institutional ownership.
Institutional & Insider Ownership
69.2% of UFP Technologies shares are owned by institutional investors. 13.3% of UFP Technologies shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This is a summary of recent recommendations for UFP Technologies and Verenium, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Valuation and Earnings
This table compares UFP Technologies and Verenium’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|UFP Technologies||$146.13 million||1.42||$7.97 million||$1.09||26.19|
UFP Technologies has higher revenue and earnings than Verenium. Verenium is trading at a lower price-to-earnings ratio than UFP Technologies, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
UFP Technologies has a beta of 0.13, indicating that its stock price is 87% less volatile than the S&P 500. Comparatively, Verenium has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500.
This table compares UFP Technologies and Verenium’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
UFP Technologies beats Verenium on 8 of the 9 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.
Verenium Company Profile
Verenium Corporation (Verenium) is an industrial biotechnology company. The Company develops and commercializes enzymes for use in a range of industrial processes. It manufactures and markets its enzyme products in the fields of animal health and nutrition, grain processing, oilfield services and other industrial processes, such as pulp and paper and textiles. As of December 31, 2012, it marketed commercial enzyme products, either independently or in collaboration with its partners. In addition, it has developed a pipeline of enzyme product candidates. Its products are organized into four product lines: animal health and nutrition, grain processing, oilfield services and other industrial processes. As of December 31, 2012, it markets nine commercial enzyme products. In October 2013, BASF SE acquired 71% stake in the Company.
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