Critical Survey: HUHUTECH International Group (NASDAQ:HUHU) versus Applied Industrial Technologies (NYSE:AIT)

HUHUTECH International Group (NASDAQ:HUHU) and Applied Industrial Technologies (NYSE:AIT) are both industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, analyst recommendations, dividends, institutional ownership and profitability.

Analyst Ratings

This is a breakdown of current ratings and target prices for HUHUTECH International Group and Applied Industrial Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HUHUTECH International Group	1	0	0	0	1.00
Applied Industrial Technologies	0	1	6	0	2.86

Applied Industrial Technologies has a consensus price target of $323.14, suggesting a potential downside of 4.10%. Given Applied Industrial Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe Applied Industrial Technologies is more favorable than HUHUTECH International Group.

Risk and Volatility

HUHUTECH International Group has a beta of -0.95, meaning that its share price is 195% less volatile than the S&P 500. Comparatively, Applied Industrial Technologies has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500.

Profitability

This table compares HUHUTECH International Group and Applied Industrial Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
HUHUTECH International Group	N/A	N/A	N/A
Applied Industrial Technologies	8.34%	21.64%	12.91%

Valuation and Earnings

This table compares HUHUTECH International Group and Applied Industrial Technologies”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HUHUTECH International Group	$21.43 million	11.61	-$17.34 million	N/A	N/A
Applied Industrial Technologies	$4.56 billion	2.73	$392.99 million	$10.59	31.82

Applied Industrial Technologies has higher revenue and earnings than HUHUTECH International Group.

Insider & Institutional Ownership

93.5% of Applied Industrial Technologies shares are held by institutional investors. 1.6% of Applied Industrial Technologies shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Applied Industrial Technologies beats HUHUTECH International Group on 11 of the 12 factors compared between the two stocks.

About HUHUTECH International Group

HUHUTECH International Group, Inc. designs and provides customized high-purity gas and chemical production system and equipment. The company was founded by Yu Jun Xiao on July 8, 2021 and is headquartered in Wuxi City, China.

About Applied Industrial Technologies

Applied Industrial Technologies, Inc. distributes industrial motion, power, control, and automation technology solutions in North America, Australia, New Zealand, and Singapore. It operates in two segments, Service Center Based Distribution, and Engineered Solutions. The company distributes bearings, power transmission products, engineered fluid power components and systems, specialty flow control solutions, advanced automation products, industrial rubber products, linear motion components, automation solutions, tools, safety products, oilfield supplies, and other industrial and maintenance supplies; and motors, belting, drives, couplings, pumps, hydraulic and pneumatic components, filtration supplies, valves, fittings, process instrumentation, actuators, and hoses, filtration supplies, as well as other related supplies for general operational needs of customers' machinery and equipment. It also operates fabricated rubber shops and service field crews that install, modify, and repair conveyor belts and rubber linings, as well as offer hose assemblies. In addition, the company provides technical support services; engages in the distribution of fluid power and industrial flow control products; advanced automation solutions, including machine vision, robotics, motion control, and smart technologies. It distributes industrial products through a network of service centers. The company serves various industries, including agriculture and food processing, cement, chemicals and petrochemicals, fabricated metals, forest products, industrial machinery and equipment, life sciences, mining, oil and gas, primary metals, technology, transportation, and utilities, as well as government entities. The company was formerly known as Bearings, Inc. and changed its to name to Applied Industrial Technologies, Inc. in 1997. The company was founded in 1923 and is headquartered in Cleveland, Ohio.