Highway (HIHO) and ARC Group WorldWide (ARCW) Critical Comparison
Highway (NASDAQ:HIHO) and ARC Group WorldWide (NASDAQ:ARCW) are both small-cap industrial products companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, analyst recommendations, institutional ownership, dividends, valuation and profitability.
Insider and Institutional Ownership
8.3% of Highway shares are held by institutional investors. Comparatively, 19.7% of ARC Group WorldWide shares are held by institutional investors. 3.6% of ARC Group WorldWide shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This table compares Highway and ARC Group WorldWide’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Highway||$19.17 million||0.77||$1.55 million||N/A||N/A|
|ARC Group WorldWide||$82.44 million||0.35||-$13.18 million||N/A||N/A|
Highway has higher earnings, but lower revenue than ARC Group WorldWide.
Volatility & Risk
Highway has a beta of 0.23, meaning that its share price is 77% less volatile than the S&P 500. Comparatively, ARC Group WorldWide has a beta of 1.92, meaning that its share price is 92% more volatile than the S&P 500.
This table compares Highway and ARC Group WorldWide’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|ARC Group WorldWide||-13.64%||-30.03%||-10.26%|
Highway pays an annual dividend of $0.40 per share and has a dividend yield of 10.3%. ARC Group WorldWide does not pay a dividend.
This is a summary of current recommendations for Highway and ARC Group WorldWide, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|ARC Group WorldWide||0||0||0||0||N/A|
Highway beats ARC Group WorldWide on 6 of the 10 factors compared between the two stocks.
Highway Holdings Limited, through its subsidiaries, manufactures and supplies metal, plastic, electric, and electronic components, subassemblies, and finished products for original equipment manufacturers (OEM) and contract manufacturers. The company operates in two segments, Metal Stamping and Mechanical OEM, and Electric OEM. It also engages in the trade of plastic injection products; and manufactures and assembles metal, plastic, mold, and electronic products, as well as automation equipment. The company's products are used in the manufacture of products, such as photocopiers, laser printers, print cartridges, electrical connectors, electrical circuits, vacuum cleaners, LED power supplies, stepping motors, pumps for dishwashers, and other washing machine components. In addition, it assists customers in the design and development of the tooling used in the metal and plastic manufacturing process, as well as provides an array of other manufacturing and engineering services. The company serves customers in Hong Kong/China, Europe, North America, and other Asian countries. Highway Holdings Limited was founded in 1990 and is headquartered in Sheung Shui, Hong Kong.
About ARC Group WorldWide
ARC Group Worldwide, Inc. provides metal injection molding and metal 3D printing solutions worldwide. It operates in three segments: Precision Components Group, Stamping Group, and 3DMT Group. The Precision Components Group segment provides engineered precision metal components using processes consisting of metal injection molding; tooling products; and plastic injection molding products. This segment serves industries, including aerospace, automotive, consumer durables, electronic devices, firearms and defense, and medical and dental devices. The Stamping Group segment engages in precision metal stamping business that offers value-added secondary design and production processing. The 3DMT Group segment provides 3D printing, including metal 3D printing solutions; and additives. ARC Group Worldwide, Inc. was founded in 1987 and is based in Deland, Florida.
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