Five Undervalued Small-Cap Stocks

BOSTON (TheStreet) -- Here are five small companies with strong fundamentals and cheap shares.

5. Oil-Dri Corp. of America(ODC) sells absorbent products, including sponges and cat litter.

The numbers: Fiscal first-quarter profit declined 2.3% to $2.2 million, or 30 cents a share, as revenue dropped 15% to $53 million. Oil-Dri's operating margin expanded from 5.8% to 6.3%. The company holds $25 million of cash and $21 million of debt.

The stock: Oil-Dri has advanced 4.6% during the past year, less than major U.S. indices. The stock trades at a price-to-earnings ratio of 12, a discount to household products peers. The shares offer a 3.7% dividend yield.