BOSTON (TheStreet) -- Small-cap stocks are typically high-beta and high-risk. But here are 10 top-ranked small-cap companies that carry more cash than debt on their balance sheets. Excess liquidity ensures that these companies can survive in any economic environment. They rank in the top percentile for expected risk-adjusted return in TheStreet's 5,000+ stock coverage universe. Below, they are ordered by net cash, from plenty to too much.
10. U.S. Physical Therapy (USPH) operates outpatient physical- and occupational-therapy clinics. Its third-quarter profit increased 25% to $3.9 million, or 33 cents a share, as revenue ascended 4.6%. The operating margin widened from 14% to 16%. U.S. Physical Therapy has $9.7 million of cash and $480,000 of debt, converting to a quick ratio of 2.3 and a miniscule debt-to-equity ratio. It trades at a cash flow multiple of 7.4, a 31% discount to the industry average. But, the stock is fairly valued relative to peers based on forward earnings and book value.
Expected Return: TheStreet's quantitative model expects the stock to rise 22% to $23.30.
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