Friedman Industries Inc. (FRD) vs Huadi International Group Co., Ltd. (HUDI)

Friedman Industries Inc. and Huadi International Group Co., Ltd. are both Steel companies. Friedman Industries Inc. is the larger, with a market value of $256.1M against $7.3M — 35.1× the size. Huadi International Group Co., Ltd. trades at the lower P/E: 1.3× against 6.2×. Huadi International Group Co., Ltd. has the higher net margin (3.40% vs 0.00%) and the lower return on invested capital (0.00% vs 25.8%). Across the 15 metrics below, Friedman Industries Inc. leads on 8 and Huadi International Group Co., Ltd. on 7.

Valuation

Metric FRD HUDI Steel median
P/E 6.19 1.31 16.37
P/S 0.28 n/m 0.70
P/B 1.37 n/m 1.10
Price to free cash flow n/m n/m 22.15
EV/EBITDA 5.62 n/m 8.16
EV/Sales 0.28 0.08 0.79
Earnings yield 16.16% 76.47% 5.02%
Free cash flow yield (0.61%) 0.00% 0.00%

Profitability

Metric FRD HUDI Steel median
Gross margin 0.00% 14.76% 13.96%
Operating margin 8.27% 0.00% 6.93%
Net margin 0.00% 3.40% 3.14%
Free cash flow margin 0.68% 0.00% 0.00%
Return on equity 0.00% 0.00% 2.21%
Return on assets 0.00% 0.00% 1.83%
Return on invested capital 25.76% 0.00% 3.18%

Growth

Metric FRD HUDI Steel median
Revenue growth (TTM) 73.68% — 15.40%
EPS growth (last fiscal year) 217.24% (1,100.00%) (18.80%)
Revenue growth, 5-year CAGR 38.68% 1.24% 7.46%
Net income growth, 5-year CAGR 10.96% 0.00% 0.00%

Health

Metric FRD HUDI Steel median
Debt to equity 0.02 0.28 0.25
Current ratio 2.68 2.61 2.56
Net debt to EBITDA 0.04 (1.10) 0.10

Dividend

Metric FRD HUDI Steel median
Dividend yield 0.45% — 1.20%
Payout ratio 0.03 — 0.36

Size

Metric FRD HUDI Steel median
Market cap 256.05m 7.29m 2.07b

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