Aaon, Hawkins, NCI: Top 5 Small-Cap Stocks

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BOSTON (TheStreet) -- The following companies have market capitalizations between $50 million and $500 million and "buy" ratings from our quantitative model, which considers more than 60 factors. They're ordered by their potential to appreciate, starting with the company with the best growth prospects.

Hawkins(HWKN Quote) makes specialty chemicals.

The numbers: Fiscal first-quarter earnings grew 24% to $6.1 million, or 58 cents a share, as revenue increased 18% to $74 million. Its gross margin remained steady at 24% and its operating margin rose from 12% to 13%. Hawkins has an ideal financial position with no debt and ample cash reserves, evident in its quick ratio of 2.8. We give the company a financial strength score of 8.9 out of 10, higher than the "buy"-list average.

The stock: Hawkins has increased 30% this year, outpacing major U.S. indices. The stock trades at a price-to-earnings ratio of 8, a discount to chemical companies and the market. Its shares offer a 2.8% dividend yield.

American Physicians Service Group(AMPH Quote) sells liability insurance and investment management services to health care providers.

The numbers: Second-quarter net income decreased 20% to $4.9 million, or 70 cents a share, as revenue declined 13% to $20 million. Its gross margin fell from 58% to 44% and its operating margin dropped from 51% to 38%. The company has an ideal financial position with $46 million of cash, compared to $6.5 million of debt. A debt-to-equity ratio of 0.1 indicates fiscal prudence.

The stock: American Physicians Service is up 8% this year, beating the Dow Jones Industrial Average, but underperforming the S&P 500 Index. The stock trades at a price-to-earnings ratio of 9, a discount to insurers and the market. The company doesn't pay dividends.