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 $284.7M against $10.4M — 27.3× the size. Huadi International Group Co., Ltd. trades at the lower P/E: 1.9× against 10.2×. Friedman Industries Inc. has the higher net margin (3.59% vs 3.40%) and the higher return on invested capital (15.2% vs 0.00%). Across the 17 metrics below, Friedman Industries Inc. leads on 10 and Huadi International Group Co., Ltd. on 7.

Valuation

Metric FRD HUDI Steel median
P/E 10.24 1.87 21.10
P/S 0.37 n/m 0.70
P/B 1.67 n/m 1.39
Price to free cash flow n/m n/m 23.71
EV/EBITDA 6.25 n/m 10.71
EV/Sales 0.36 0.08 0.85
Earnings yield 9.76% 53.42% 4.56%
Free cash flow yield (2.62%) 0.00% 0.00%

Profitability

Metric FRD HUDI Steel median
Gross margin 10.33% 14.76% 13.91%
Operating margin 5.27% 0.00% 4.77%
Net margin 3.59% 3.40% 3.40%
Free cash flow margin (0.96%) 0.00% 0.00%
Return on equity 17.90% 0.00% 2.21%
Return on assets 9.10% 0.00% 1.83%
Return on invested capital 15.24% 0.00% 2.52%

Growth

Metric FRD HUDI Steel median
Revenue growth (TTM) 61.80% — 11.33%
EPS growth (last fiscal year) 217.24% (1,100.00%) —
Revenue growth, 5-year CAGR 38.68% 1.24% 6.73%
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 0.22
Current ratio 2.90 2.61 2.58
Net debt to EBITDA 0.04 (1.10) 0.10

Dividend

Metric FRD HUDI Steel median
Dividend yield 0.48% — 2.48%
Payout ratio 0.03 0.00 0.04

Size

Metric FRD HUDI Steel median
Market cap 284.69m 10.44m 1.46b

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