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HLP vs HUDI

HLP
Hongli Group Inc.
NEUTRAL
Price
$0.89
Market Cap
$65.3M
Sector
Basic Materials
AI Confidence
80%
HUDI
Huadi International Group Co., Ltd.
BEARISH
Price
$1.16
Market Cap
$16.6M
Sector
Basic Materials
AI Confidence
85%

Valuation

P/E Ratio
HLP
17.78
HUDI
--
Forward P/E
HLP
--
HUDI
--
P/B Ratio
HLP
1.18
HUDI
0.22
P/S Ratio
HLP
3.9
HUDI
0.26
EV/EBITDA
HLP
32.42
HUDI
-13.16

Profitability

Gross Margin
HLP
32.91%
HUDI
10.8%
Operating Margin
HLP
13.39%
HUDI
-7.46%
Profit Margin
HLP
6.04%
HUDI
-2.22%
ROE
HLP
2.65%
HUDI
-1.82%
ROA
HLP
1.73%
HUDI
-1.85%

Growth

Revenue Growth
HLP
37.7%
HUDI
-9.9%
Earnings Growth
HLP
--
HUDI
--

Financial Health

Debt/Equity
HLP
0.17
HUDI
0.3
Current Ratio
HLP
1.15
HUDI
2.89
Quick Ratio
HLP
0.88
HUDI
1.68

Dividends

Dividend Yield
HLP
--
HUDI
--
Payout Ratio
HLP
0.0%
HUDI
0.0%

AI Verdict

HLP NEUTRAL

HLP exhibits a stable financial foundation with a Piotroski F-Score of 5/9 and a very conservative Debt/Equity ratio of 0.17. While the current price of $0.89 is well-supported by the Graham Number ($0.92), it trades at a significant premium to its growth-based intrinsic value of $0.35. The company is outperforming its sector peers in terms of profitability and debt management, yet it suffers from a devastating technical trend (0/100) and consistent long-term price erosion. The stock is fundamentally sound but lacks any market momentum or catalyst.

Strengths
Strong YoY revenue growth of 37.70%
Very low leverage with a Debt/Equity ratio of 0.17
Positive profit margins (6.04%) in a sector where the average is negative (-9.38%)
Risks
Severe bearish technical trend (0/100) indicating strong selling pressure
Significant discrepancy between current price and intrinsic value ($0.35)
Poor long-term price performance with a 5-year decline of 74.6%
HUDI BEARISH

HUDI presents as a classic value trap, characterized by a stable Piotroski F-Score of 4/9 but crippled by severe technical decay and negative growth. While the company maintains a strong liquidity position (Current Ratio 2.89) and trades at a deep discount to book value (P/B 0.22), it is unable to translate this into profitability or revenue growth. The combination of a 0/100 technical trend and a -78.2% five-year price collapse suggests that the market is pricing in a permanent impairment of capital despite the low debt levels.

Strengths
Extremely low Price-to-Book ratio (0.22) suggesting deep asset value
Strong short-term liquidity with a Current Ratio of 2.89
Low leverage with a Debt/Equity ratio of 0.30
Risks
Negative revenue growth (-9.90% YoY) indicating shrinking market share
Persistent lack of profitability (Negative ROE and ROA)
Severe technical downtrend with 0/100 momentum score

Compare Another Pair

HLP vs HUDI: Head-to-Head Comparison

This page compares Hongli Group Inc. (HLP) and Huadi International Group Co., Ltd. (HUDI) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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