Head to Head Analysis: UFP Technologies (NASDAQ:UFPT) vs. Acme United (NYSE:ACU)

Acme United (NYSE:ACU) and UFP Technologies (NASDAQ:UFPT) are both healthcare companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.

Institutional & Insider Ownership

62.1% of Acme United shares are held by institutional investors. Comparatively, 87.3% of UFP Technologies shares are held by institutional investors. 29.5% of Acme United shares are held by company insiders. Comparatively, 4.6% of UFP Technologies shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk & Volatility

Acme United has a beta of 0.47, meaning that its share price is 53% less volatile than the S&P 500. Comparatively, UFP Technologies has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500.

Profitability

This table compares Acme United and UFP Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Acme United	10.25%	9.70%	6.10%
UFP Technologies	11.45%	18.42%	11.96%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Acme United and UFP Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Acme United	0	0	0	1	4.00
UFP Technologies	0	2	0	0	2.00

Valuation and Earnings

This table compares Acme United and UFP Technologies”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Acme United	$211.60 million	1.01	$17.79 million	$2.38	23.60
UFP Technologies	$602.80 million	4.00	$68.31 million	$8.81	35.40

UFP Technologies has higher revenue and earnings than Acme United. Acme United is trading at a lower price-to-earnings ratio than UFP Technologies, indicating that it is currently the more affordable of the two stocks.

Summary

UFP Technologies beats Acme United on 10 of the 13 factors compared between the two stocks.

About Acme United

Acme United Corporation supplies cutting, measuring, first aid, and sharpening products to the school, home, office, hardware, sporting goods, and industrial markets in the United States, Canada, Europe, and internationally. The company offers scissors, shears, knives, rulers, pencil sharpeners, paper trimmers, safety cutters, lettering products, glue guns, and other craft products under the Westcott brand name; and cutting tools under the Clauss brand. It also provides sharpening knives, scissors, chisels, skis, skates, and other edge under the DMT brand. In addition, the company offers first aid kit and safety solutions under the First Aid Only brand; portable eyewash solution and over-the-counter medication, including active ingredients aspirin, acetaminophen, and ibuprofen under the PhysiciansCare brand; bodily fluid and spill clean-up solution under the Spill Magic brand; various first aid kit, refill, and safety supplies, including CPR kits, burn kits, and automotive and emergency first aid kits under the First Aid Central; first aid kits for the promotional products industry under Safety Made brand; and alcohol prep pads, alcohol wipes, benzalkonium chloride wipes, various antiseptic wipes, castile soaps, and lens cleaning wipes under the Med-Nap brand. It sells its products directly and through its independent manufacturer representatives to wholesale, contract, and retail stationery distributors; office supply super stores, mass market retailers, industrial and medical distributors, school supply distributors, drug store retailers, sporting goods stores, hardware chains, and wholesale florists, as well as through its websites. The company was formerly known as Acme Shear Company and changed its name to Acme United Corporation in 1971. Acme United Corporation was founded in 1867 and is based in Shelton, Connecticut.

About UFP Technologies

UFP Technologies, Inc. designs and manufactures solutions for medical devices, sterile packaging, and other highly engineered custom products. The company offers protective drapes for robotic surgery, single patient use surfaces, advanced wound care, infection prevention, disposables for surgical and endoscopic procedures, packaging for medical devices, orthopedic implants, biopharma drug manufacturing, and coils for catheters; and molded components for applications in acoustic insulation, interior trim, load floors, sunshades, SUV cargo cover handles, driveshaft damping, engine and manifold covers, quarter panels, and wheel liners. It also provides molded composites for commercial aviation and military gear for use in backpack components, knee and elbow pads, eyewear, and helmets; and reusable cases and custom for applications in military ballistics panels, virtual training systems, drones, communications equipment, and rugged portable computers. In addition, the company provides engineered products and components to customers in the automotive, aerospace and defense, and industrial markets for applications in military uniform and gear components, automotive interior trim, air filtration, and protective cases and inserts. It markets and sells its products through a direct sales force. The company was founded in 1963 and is headquartered in Newburyport, Massachusetts.