Some of the following small cap names offer tremendous growth potentials as their PEG ratios hover close to 1. As I find P/E and P/S ratios very volatile when trying to assess small cap securities, I concentrate more on ratios that encapsulate these stocks as financially sound: price-to-book, price-to-cash, return on equity, and debt-to-capital.
It is noteworthy to mention that as with most ratios, it is useful to compare them within their industries. In addition, very low price-to-book ratios could also signal that something could be fundamentally wrong with a company or there are relatively low barriers for new entrants.
|Company Name||PEG Ratio||Price/Book||Price/Cash||ROE||Debt/Capital|
|A.O. Smith Corp. (AOS)||1.2||1.7||11.8||10.09%||27.91%|
|Bank of Hawaii Corp. (BOH)||1.5||1.9||10.4||16.08%||-|
|Casey's General Stores (CASY)||1.7||3.9||9.5||14.90%||60.72%|
|Lithia Motors, Inc. (LAD)||0.5||1.1||6.9||9.38%||64.42%|
|LifePoint Hospitals, Inc (LPNT)||1.1||0.9||5.5||8.30%||44.11%|
|MKS Instruments, Inc. (MKSI)||0.4||1.3||7.4||17.32%||0.06%|
|Minerals Technologies, Inc. (MTX)||2.1||1.2||7.3||8.56%||10.73%|
|99 Cents Only Stores (NDN)||1.3||1.9||12.8||11.38%||0.07%|
|Novellus Systems, Inc. (NVLS)||0.7||1.9||5.7||28.36%||9.73%|
|Olin Corporation (OLN)||0.4||1.5||4.9||23.14%||37.11%|
|Plantronics, Inc. (PLT)||0.9||2.4||11||19.44%||0.00%|
|Portfolio Recovery Associates (PRAA)||0.8||2.1||11||17.72%||31.08%|
|Superior Industries International (SUP)||0.1||1.0||5.1||13.58%||0.00%|
|Trustmark Corporation (TRMK)||1.4||1.1||9.5||9.13%||-|
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.