Financial Analysis: Federal Screw Works (OTCMKTS:FSCR) versus Suncrete (NASDAQ:RMIX)

Federal Screw Works (OTCMKTS:FSCR) and Suncrete (NASDAQ:RMIX) are both small-cap materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, analyst recommendations, institutional ownership, profitability and risk.

Valuation & Earnings

This table compares Federal Screw Works and Suncrete”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Federal Screw Works	$97.55 million	0.10	$1.62 million	$0.71	10.06
Suncrete	N/A	N/A	N/A	($0.14)	-125.00

Federal Screw Works has higher revenue and earnings than Suncrete. Suncrete is trading at a lower price-to-earnings ratio than Federal Screw Works, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Federal Screw Works has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500. Comparatively, Suncrete has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500.

Institutional & Insider Ownership

71.1% of Suncrete shares are held by institutional investors. 46.2% of Federal Screw Works shares are held by company insiders. Comparatively, 22.2% of Suncrete shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Federal Screw Works and Suncrete, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Federal Screw Works	0	0	0	0	0.00
Suncrete	0	1	3	2	3.17

Suncrete has a consensus price target of $22.25, suggesting a potential upside of 27.14%. Given Suncrete’s stronger consensus rating and higher probable upside, analysts clearly believe Suncrete is more favorable than Federal Screw Works.

Profitability

This table compares Federal Screw Works and Suncrete’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Federal Screw Works	0.99%	N/A	N/A
Suncrete	N/A	N/A	N/A

Summary

Federal Screw Works beats Suncrete on 6 of the 11 factors compared between the two stocks.

About Federal Screw Works

Federal Screw Works manufactures and sells industrial component parts primarily to the automobile industry in the United States. It operates through Big Rapids, Romulus, Traverse City, and Novex Tool divisions. The company offers cold formed and machined pins, including piston pins, planetary and differential gear shafts, and oil pump and steering shafts for the automotive, refrigeration, and small engine industries; and cold formed machined products, such as suspension ball studs, fluid line adapters, and precision formed and machined valve lifter bodies to the automotive industry. It also provides close tolerance machined products that are used in transmission valves, ball joints, steering gear bulkhead assemblies, torque converter hubs, and piston pins; and engineered nut products comprising prevailing torque nuts, free spinning nuts, slotted nuts, nut retainer assemblies, and nut washer assemblies to the automotive industry. In addition, the company offers cold form tooling products, which include assemblies, sleeves, dies, and punches; and complex cold formed parts, such as tie rod housings, valve lifter bodies, and suspension components. Federal Screw Works was founded in 1917 and is based in Romulus, Michigan.

About Suncrete

Haymaker Acquisition Corp. 4 is a blank check company. It focuses on effecting a merger, share exchange, asset acquisition, share purchase, reorganization, or other business combination with one or more businesses or entities. Haymaker Acquisition Corp. 4 is based in New York.