Analyzing Worthington Steel (NYSE:WS) & Li Bang International (NASDAQ:LBGJ)

Li Bang International (NASDAQ:LBGJ) and Worthington Steel (NYSE:WS) are both small-cap basic materials companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.

Risk and Volatility

Li Bang International has a beta of 0.58, meaning that its share price is 42% less volatile than the S&P 500. Comparatively, Worthington Steel has a beta of 1.72, meaning that its share price is 72% more volatile than the S&P 500.

Profitability

This table compares Li Bang International and Worthington Steel’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Li Bang International	N/A	N/A	N/A
Worthington Steel	3.80%	10.11%	6.16%

Valuation and Earnings

This table compares Li Bang International and Worthington Steel”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Li Bang International	$11.11 million	1.18	-$1.01 million	N/A	N/A
Worthington Steel	$3.09 billion	0.56	$110.70 million	$2.18	15.67

Worthington Steel has higher revenue and earnings than Li Bang International.

Analyst Ratings

This is a breakdown of current ratings and target prices for Li Bang International and Worthington Steel, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Li Bang International	1	0	0	0	1.00
Worthington Steel	0	1	1	0	2.50

Worthington Steel has a consensus price target of $36.00, suggesting a potential upside of 5.39%. Given Worthington Steel’s stronger consensus rating and higher possible upside, analysts plainly believe Worthington Steel is more favorable than Li Bang International.

Insider and Institutional Ownership

45.4% of Worthington Steel shares are held by institutional investors. 2.6% of Worthington Steel shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Worthington Steel beats Li Bang International on 11 of the 12 factors compared between the two stocks.

About Li Bang International

Li Bang International Corporation Inc. specializes in the research, development, production and sale of stainless steel commercial kitchen equipment under its own `Li Bang` brand principally in China. In addition to its product offerings, the Company provides comprehensive services from early-stage design of commercial kitchen appliances to equipment installation and after-sales maintenance. Li Bang International Corporation Inc. is based in Jiangyin, China.

About Worthington Steel

Worthington Steel, Inc. operates as a steel processor in North America. It offers carbon flat-rolled steel and tailor welded blanks, as well as electrical steel laminations; and aluminum tailor welded blanks. The company serves various end-markets, including automotive, heavy truck, agriculture, construction, and energy. Worthington Steel, Inc. was incorporated in 2023 and is based in Columbus, Ohio.