Proto Labs (NYSE:PRLB – Get Free Report) and Highway (NASDAQ:HIHO – Get Free Report) are both industrials companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.
Insider & Institutional Ownership
84.5% of Proto Labs shares are owned by institutional investors. Comparatively, 13.2% of Highway shares are owned by institutional investors. 1.3% of Proto Labs shares are owned by company insiders. Comparatively, 32.1% of Highway shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Proto Labs and Highway, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Proto Labs | 0 | 2 | 2 | 0 | 2.50 |
| Highway | 1 | 0 | 0 | 0 | 1.00 |
Risk and Volatility
Proto Labs has a beta of 1.38, meaning that its share price is 38% more volatile than the S&P 500. Comparatively, Highway has a beta of 0.46, meaning that its share price is 54% less volatile than the S&P 500.
Valuation and Earnings
This table compares Proto Labs and Highway”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Proto Labs | $560.54 million | 4.16 | $21.24 million | $1.25 | 78.03 |
| Highway | $4.80 million | 0.85 | -$1.52 million | ($0.32) | -2.76 |
Proto Labs has higher revenue and earnings than Highway. Highway is trading at a lower price-to-earnings ratio than Proto Labs, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Proto Labs and Highway’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Proto Labs | 5.44% | 4.80% | 4.22% |
| Highway | -28.08% | -25.93% | -15.72% |
Summary
Proto Labs beats Highway on 13 of the 14 factors compared between the two stocks.
About Proto Labs
Proto Labs, Inc., together with its subsidiaries, operates as a digital manufacturer of custom parts in the United States and Europe. The company offers injection molding; computer numerical control machining; three-dimensional printing; and sheet metal fabrication products. It serves developers and engineers, who use 3D computer-aided design software to design products across a range of end-markets. Proto Labs, Inc. was incorporated in 1999 and is headquartered in Maple Plain, Minnesota.
About Highway
Highway Holdings Limited, together with its subsidiaries, manufactures and supplies metal, plastic, electric, and electronic components, subassemblies, and finished products for original equipment manufacturers (OEMs) and contract manufacturers. It operates through two segments, Metal Stamping and Mechanical OEM; and Electric OEM. The company also trades in plastic injection products; and manufactures and assembles automation equipment. Its products are used in the manufacture of products, such as photocopiers, laser printers, print cartridges, electrical connectors, electrical circuits, vacuum cleaners, LED power supplies, stepping motors, pumps for dishwashers, and other washing machine components. In addition, the company assists customers in the design and development of the tooling used in the metal and plastic manufacturing process, as well as provides an array of other manufacturing and engineering services, including metal stamping, screen printing, plastic injection molding, pad printing, and electronic assembly of printed circuit boards. It operates in Hong Kong and China, Europe, North America, and other Asian countries. Highway Holdings Limited was incorporated in 1990 and is headquartered in Sheung Shui, Hong Kong.
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