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Do you consider company size when choosing among stocks? There are diversification benefits in investing across different company sizes. Large-cap stocks tend to follow economic activity, while small-cap companies tend to deal more with company-specific risks.

For ideas on how to dig deeper into the small-cap sector, we ran a screen. We began by screening for small-cap stocks (with market caps between $300-500 million) for those rallying above their 20-day, 50-day, and 200-day moving averages.

We then screened for those seeing higher profit margins than their industry peers, with higher gross, operating, and pretax margins than their industry averages by at least 5%.

Interactive Chart: Press Play to compare changes in market cap over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.

Do you think these names will continue to see superior profitability? Use this list as a starting point for your own analysis.

1. AFC Enterprises Inc. (AFCE): Develops, operates, and franchises quick-service restaurants under the trade names of Popeyes Chicken & Biscuits and Popeyes Louisiana Kitchen. Market cap at $420.31M. Price at $17.21. The stock is currently rallying 3.60% above its 20-day moving average, 3.84% above its 50-day MA, and 15.37% above its 200-day MA. TTM gross margin at 71.13% vs. industry average at 36.54%. TTM operating margin at 27.11% vs. industry average at 19.2%.TTM pretax margin at 24.06% vs. industry average at 17.23%.

2. Cardinal Financial Corp. (CFNL): Operates as the holding company for Cardinal Bank that provides banking products and services to commercial and retail customers in Virginia and greater Washington, D. Market cap at $334.34M. Price at $11.31. The stock is currently rallying 1.04% above its 20-day moving average, 1.55% above its 50-day MA, and 7.96% above its 200-day MA. TTM gross margin at 77.68% vs. industry average at 72.34%. TTM operating margin at 50.38% vs. industry average at 40%.TTM pretax margin at 30.7% vs. industry average at 22.38%.

3. US Ecology, Inc. (ECOL): Provides waste treatment, disposal, recycling, and transportation services to commercial and government entities in the United States. Market cap at $406.15M. Price at $22.26. The stock is currently rallying 9.03% above its 20-day moving average, 12.71% above its 50-day MA, and 25.83% above its 200-day MA. TTM gross margin at 45.52% vs. industry average at 40.27%. TTM operating margin at 21.08% vs. industry average at 14.83%.TTM pretax margin at 19.24% vs. industry average at 10.6%.

4. Monmouth Real Estate Investment Corp. (MNR): A real estate investment trust. It owns, manages, and leases properties to investment-grade tenants on long-term leases. Market cap at $404.11M. Price at $9.84. The stock is currently rallying 2.51% above its 20-day moving average, 4.26% above its 50-day MA, and 16.32% above its 200-day MA. TTM gross margin at 53.49% vs. industry average at 41.37%. TTM operating margin at 53.49% vs. industry average at 39.11%.TTM pretax margin at 27.53% vs. industry average at 19.35%.

5. USA Mobility, Inc. (USMO): Provides wireless communications solutions to the healthcare, government, enterprise, and emergency response sectors in the United States. Market cap at $316.16M. Price at $14.19. The stock is currently rallying 5.22% above its 20-day moving average, 2.39% above its 50-day MA, and 1.15% above its 200-day MA. TTM gross margin at 66.57% vs. industry average at 58.43%. TTM operating margin at 28.01% vs. industry average at 18.9%.TTM pretax margin at 26.25% vs. industry average at 13.34%.

6. Zygo Corp. (ZIGO): Designs, develops, and manufactures ultra-high precision measurement solutions to enhance its customers' manufacturing yields; and optical sub-systems and components for original equipment manufacturers and end-user applications in the United States and internationally. Market cap at $358.38M. Price at $19.77. The stock is currently rallying 1.37% above its 20-day moving average, 4.39% above its 50-day MA, and 29.83% above its 200-day MA. TTM gross margin at 52.23% vs. industry average at 35.46%. TTM operating margin at 17.1% vs. industry average at 9.43%.TTM pretax margin at 16.32% vs. industry average at 9.87%.

*Profitability data sourced from Fidelity, all other data sourced from Finviz.

Source: 6 Rallying Small-Caps With Impressive Profitability Relative To Peers