NCI, Monro Muffler: Top 5 Small-Cap Stocks

NCI(NCIT), a technology consulting firm, advises government agencies on issues such as cybersecurity and computer networking.

The numbers: Second-quarter net income rose 26% to $5.1 million, or 37 cents, as revenue advanced 13% to $109 million. Its operating margin rose to 8% and its net margin rose from 4% to 5%. A quick ratio of 1.6 demonstrates NCI's ample liquidity. And a debt-to-equity ratio of 0.2 indicates modest leverage.

The stock: NCI shares are flat this year, underperforming major U.S. indices. The stock trades at an expensive price-to-earnings ratio of 21 and the company doesn't pay dividends. NCI's services will be in demand as the federal government tries to trim spending.

Bio-Reference Laboratories(BRLI) provides testing services in the New York area.

The numbers: Fiscal second-quarter net income grew 35% to $4.6 million, or 33 cents, as revenue increased 16% to $87 million. Its operating margin expanded from 8% to 10% and its net margin topped 5%. The company has an admirable financial position, with $13 million of cash reserves, amounting to a quick ratio of 1.8, and a debt-to-equity ratio of just 0.3.

The stock: Bio-Reference is up 14% this year, outpacing the Dow Jones Industrial Average and the S&P 500 Index. The stock trades at a costly price-to-earnings ratio of 23 and the company doesn't pay dividends.

Atrion(ATRI) makes medical products and surgical tools.

The numbers: Second-quarter net income grew 13% to $4.7 million, or $2.30, as revenue climbed 7% to $26 million. Its operating margin rose from 25% to 27% and its net margin climbed to 18%. Atrion has no debt and $22 million of cash, amounting to a quick ratio of 4.9.