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The following is a list of small cap stocks, with market caps smaller than $2.0B. The management teams mentioned below have all outperformed their competitors over the last five years, when comparing the Return on Assets (ROA), Return on Invested Capital (ROI) and Return on Equity (ROE) ratios.

We're not going to go into detailed analysis for each company. The goal here is to give you a starting point for your own analysis.

Will these management teams continue to outperform? What do you think? Full details below.

Management data and industry comps sourced from Reuters, short float and performance data sourced from Finviz.

Interactive Chart: Press Play to compare changes in market cap for the top six names mentioned below. Note: The numbers on top of items represent the forward P/E ratio, if available.


1. Hadera Paper Ltd. (AIP): Paper and Paper Products Industry. Market cap of $411.23M. 5-year average return on assets at 3.51% vs. industry average at 1.81%. 5-year average return on investments at 4.97% vs. industry average at 2.58%. 5-year return on equity at 8.46% vs. industry average at 4.95%. Short float at 0.01%, which implies a short ratio of 0.57 days. The stock has gained 12.95% over the last year.

2. General Cable Corp. (BGC): Industrial Electrical Equipment Industry. Market cap of $1.97B. 5-year average return on assets at 4.87% vs. industry average at 4.49%. 5-year average return on investments at 8.45% vs. industry average at 6.15%. 5-year return on equity at 20.08% vs. industry average at 4.81%. Short float at 10.36%, which implies a short ratio of 7.63 days. The stock has gained 21.15% over the last year.

3. McGrath Rentcorp (MGRC): Rental and Leasing Services Industry. Market cap of $629.91M. 5-year average return on assets at 6.29% vs. industry average at 4.40%. 5-year average return on investments at 11.51% vs. industry average at 5.68%. 5-year return on equity at 17.44% vs. industry average at 12.35%. Short float at 2.73%, which implies a short ratio of 7.26 days. The stock has gained 22% over the last year.

4. Daktronics Inc. (DAKT): Industrial Electrical Equipment Industry. Market cap of $662.95M. 5-year average return on assets at 6.93% vs. industry average at 2.98%. 5-year average return on investments at 10.41% vs. industry average at 4.92%. 5-year return on equity at 10.97% vs. industry average at 6.65%. Short float at 7.5%, which implies a short ratio of 11.57 days. The stock has gained 92.42% over the last year.

5. Knight Capital Group Inc. (KCG): Investment Brokerage Industry. Market cap of $1.37B. 5-year average return on assets at 7.26% vs. industry average at 0.86%. 5-year average return on investments at 9.41% vs. industry average at 2.49%. 5-year return on equity at 14.47% vs. industry average at 3.09%. Short float at 7.99%, which implies a short ratio of 6.82 days. The stock has lost -8.84% over the last year.

6. Aaron's, Inc. (AAN): Specialty Retail Industry. Market cap of $1.7B. 5-year average return on assets at 7.72% vs. industry average at 4.34%. 5-year average return on investments at 9.17% vs. industry average at 7.51%. 5-year return on equity at 12.90% vs. industry average at 11.03%. Short float at 8.21%, which implies a short ratio of 32.35 days. The stock has gained 36.68% over the last year.

7. Universal Electronics Inc. (UEIC): Electronic Equipment Industry. Market cap of $346.94M. 5-year average return on assets at 7.81% vs. industry average at 2.34%. 5-year average return on investments at 10.53% vs. industry average at 5.80%. 5-year return on equity at 10.62% vs. industry average at 7.42%. Short float at 3.55%, which implies a short ratio of 6.85 days. The stock has gained 0.12% over the last year.

8. Advisory Board Co. (ABCO): Business Services Industry. Market cap of $768.6M. 5-year average return on assets at 7.90% vs. industry average at 5.97%. 5-year average return on investments at 17.10% vs. industry average at 10.21%. 5-year return on equity at 18.56% vs. industry average at 12.70%. Short float at 3.01%, which implies a short ratio of 10.29 days. The stock has gained 50.06% over the last year.

9. Cato Corp. (CATO): Apparel Stores Industry. Market cap of $745.76M. 5-year average return on assets at 9.75% vs. industry average at 8.79%. 5-year average return on investments at 14.56% vs. industry average at 13.14%. 5-year return on equity at 16.18% vs. industry average at 15.02%. Short float at 1.58%, which implies a short ratio of 4.47 days. The stock has gained 21.36% over the last year.

10. Timberland Co. (TBL): Textile Industry. Market cap of $1.37B. 5-year average return on assets at 10.15% vs. industry average at 7.72%. 5-year average return on investments at 14.34% vs. industry average at 11.77%. 5-year return on equity at 15.05% vs. industry average at 14.41%. Short float at 3.79%, which implies a short ratio of 3.33 days. The stock has gained 48.07% over the last year.

11. Bio-Reference Laboratories Inc. (BRLI): Medical Laboratories and Research Industry. Market cap of $659.85M. 5-year average return on assets at 11.0% vs. industry average at 3.41%. 5-year average return on investments at 17.06% vs. industry average at 4.40%. 5-year return on equity at 18.50% vs. industry average at 6.19%. Short float at 21.08%, which implies a short ratio of 24.05 days. The stock has gained 17.38% over the last year.

12. Getty Realty Corp. (GTY): REIT. Market cap of $883.23M. 5-year average return on assets at 11.10% vs. industry average at 2.37%. 5-year average return on investments at 13.14% vs. industry average at 2.78%. 5-year return on equity at 17.92% vs. industry average at 4.65%. Short float at 6.99%, which implies a short ratio of 9.37 days. The stock has gained 33.91% over the last year.

13. Simcere Pharmaceutical Group. (SCR): Drug Manufacturers Industry. Market cap of $700.18M. 5-year average return on assets at 11.34% vs. industry average at 9.21%. 5-year average return on investments at 15.67% vs. industry average at 11.47%. 5-year return on equity at 16.09% vs. industry average at 14.92%. Short float at 0.25%, which implies a short ratio of 1.14 days. The stock has gained 32.61% over the last year.

14. AZZ incorporated (AZZ): Industrial Electrical Equipment Industry. Market cap of $452.75M. 5-year average return on assets at 11.97% vs. industry average at 4.49%. 5-year average return on investments at 14.84% vs. industry average at 6.14%. 5-year return on equity at 20.07% vs. industry average at 4.81%. Short float at 2.92%, which implies a short ratio of 5.56 days. The stock has gained 18.48% over the last year.

15. FreightCar America Inc. (RAIL): Railroads Industry. Market cap of $363.15M. 5-year average return on assets at 13.25% vs. industry average at 5.38%. 5-year average return on investments at 19.22% vs. industry average at 9.18%. 5-year return on equity at 27.78% vs. industry average at 14.24%. Short float at 9.43%, which implies a short ratio of 14.27 days. The stock has gained 47.12% over the last year.

Source: 15 Small Cap Stocks With Great Management Teams