Analyzing Lawson Products (NASDAQ:LAWS) & YBCC (OTCMKTS:YBAO)

Lawson Products (NASDAQ:LAWS) and YBCC (OTCMKTS:YBAO) are both small-cap industrial products companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, institutional ownership, valuation and risk.

Institutional & Insider Ownership

86.8% of Lawson Products shares are owned by institutional investors. 49.2% of Lawson Products shares are owned by company insiders. Comparatively, 61.4% of YBCC shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings for Lawson Products and YBCC, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lawson Products 0 0 1 0 3.00
YBCC 0 0 0 0 N/A

Lawson Products presently has a consensus target price of $53.00, indicating a potential upside of 8.85%. Given Lawson Products’ higher probable upside, equities research analysts plainly believe Lawson Products is more favorable than YBCC.

Valuation and Earnings

This table compares Lawson Products and YBCC’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Lawson Products $370.79 million 1.19 $7.22 million $0.91 53.51
YBCC $2.25 million 0.10 -$150,000.00 N/A N/A

Lawson Products has higher revenue and earnings than YBCC.

Volatility and Risk

Lawson Products has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500. Comparatively, YBCC has a beta of 0.31, meaning that its share price is 69% less volatile than the S&P 500.

Profitability

This table compares Lawson Products and YBCC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lawson Products 3.47% 7.18% 3.93%
YBCC N/A N/A N/A

Summary

Lawson Products beats YBCC on 10 of the 11 factors compared between the two stocks.

Lawson Products Company Profile

Lawson Products, Inc. distributes products and services to the industrial, commercial, institutional, and government maintenance, repair, and operations marketplace in the United States and Canada. It operates in two segments, Lawson and Bolt. The company's products include fastening systems, fluid power products, specialty chemicals, cutting tools and abrasives, electrical products, aftermarket automotive supplies, safety products, welding and metal repair products, and other products. It serves customers operating in the automotive repair, commercial vehicle maintenance, government, manufacturing, food processing, distribution, construction, oil and gas, mining, wholesale, service, and other industries. The company sells its products through sales representatives, as well as directly from its Website or through fax or phone. Lawson Products, Inc. was founded in 1952 and is headquartered in Chicago, Illinois.

YBCC Company Profile

YBCC, Inc. does not have significant operations. The company focuses on the acquisition of or merger with an existing company. Previously, it was engaged in the bio-science manufacture and research business. The company is based in Walnut, California.

Receive News & Ratings for Lawson Products Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Lawson Products and related companies with MarketBeat.com's FREE daily email newsletter.