NF Energy Saving (NASDAQ:NFEC) and Highway (NASDAQ:HIHO) 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 analyst recommendations, valuation, earnings, profitability, institutional ownership, risk and dividends.

Volatility and Risk

NF Energy Saving has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500. Comparatively, Highway has a beta of 0.17, suggesting that its share price is 83% less volatile than the S&P 500.

Profitability

This table compares NF Energy Saving and Highway’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NF Energy Saving -45.23% -11.18% -7.39%
Highway 5.86% 8.58% 5.64%

Dividends

Highway pays an annual dividend of $0.40 per share and has a dividend yield of 10.6%. NF Energy Saving does not pay a dividend.

Institutional & Insider Ownership

8.7% of Highway shares are owned by institutional investors. 51.2% of NF Energy Saving shares are owned 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.

Earnings and Valuation

This table compares NF Energy Saving and Highway’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NF Energy Saving $8.51 million 12.62 -$1.56 million N/A N/A
Highway $19.17 million 0.75 $1.55 million N/A N/A

Highway has higher revenue and earnings than NF Energy Saving.

Analyst Recommendations

This is a summary of recent recommendations and price targets for NF Energy Saving and Highway, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NF Energy Saving 0 0 0 0 N/A
Highway 0 0 0 0 N/A

Summary

Highway beats NF Energy Saving on 7 of the 10 factors compared between the two stocks.

About NF Energy Saving

NF Energy Saving Corporation, through its subsidiaries, engages in the production and sale of energy-saving and intelligent flow control equipment in the People's Republic of China. The company manufactures large diameter energy efficient intelligent flow control systems for thermal and nuclear power generation plants, and national and regional water supply projects, as well as for municipal water, gas, and heat supply pipeline networks. It also provides equipment related to desulfurization, denitration, and dust removal for electric power generation, metallurgy, petrochemical, steel, cement, and heating supply industries. In addition, the company offers energy saving technology consulting, optimization design services, energy saving reconstruction of pipeline networks, and contractual energy management services for electric power, petrochemical, coal, metallurgy, construction, and municipal infrastructure industries. Further, it provides industrial valve components that are used in water supply and sewage systems, coal and gas fields, power generation stations, and petroleum and chemical industries; and develops and produces hi-tech and automatic-intelligence valve products. NF Energy Saving Corporation also exports its products to the United States, Russia, Turkey, Italy, Bulgaria, South Korea, Vietnam, India, Thailand, South Africa, Iraq, and Afghanistan. The company was formerly known as NF Energy Saving Corporation of America and changed its name to NF Energy Saving Corporation in August 2009. NF Energy Saving Corporation is based in Shenyang, the People's Republic of China.

About Highway

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.

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