
Five Dirt-Cheap Small-Caps to Consider
BOSTON (TheStreet) -- The Russell 2000, a small-cap barometer, has declined 3% during the past month as the stock market suffered a mild correction. Here are five cheap small-company stocks to consider buying.
5. Connecticut Water Service
(CTWS) - Get Report
is a regulated water utility.
The numbers
: Third-quarter profit doubled to $5.8 million, or 67 cents a share, as revenue declined 2% to $17 million. The company's operating margin extended from 32% to 36%. Connecticut Water Service has a poor liquidity position, evident in its quick ratio of 0.5. Its 1.1 debt-to-equity ratio indicates sizable leverage.
The stock
: Connecticut Water Service decreased 5% during the past year, less than major U.S. indices. The stock trades at a price-to-earnings ratio of 18, a premium to water-utility peers. The shares offer a 4% dividend yield.
4. Atrion
(ATRI) - Get Report
sells health-care supplies.
The numbers
: Third-quarter profit rose 12% to $4.5 million, or $2.20 a share, as revenue climbed 7% to $25 million. Atrion's operating margin climbed from 25% to 26%. The company has an ideal financial position, with $19 million of cash and no debt.
The stock
: Atrion soared 72% during the past year, beating major U.S. indices. The stock trades at a price-to-earnings ratio of 17, a discount to health-care-supply peers. The shares offer a 1% dividend yield.
3. Orchids Paper Products
(TIS) - Get Report
manufactures paper towels and napkins.
The numbers
: Third-quarter net income surged 168% to $3.8 million, and earnings per share increased 136% to 52 cents. Revenue climbed 5% to $25 million. The company's operating margin rose from 10% to 23%. A quick ratio of 3 and debt-to-equity ratio of 0.4 reflect fiscal prudence.
The stock
: Orchids Paper Products soared 83% during the past year, outperforming major U.S. indices. The stock trades at a price-to-earnings ratio of 10, a discount to household-products peers. Orchids doesn't pay dividends.
2. Hawkins
(HWKN) - Get Report
sells specialty chemicals.
The numbers
: Fiscal third-quarter profit dropped 20% to $5.6 million, or 54 cents a share, as revenue fell 20% to $61 million. The company's operating margin inched up from 15% to 16%. Hawkins has an ideal financial position, with $14 million of cash and no debt.
The stock
: Hawkins climbed 37% during the past year, more than the
Dow Jones Industrial Average
and
S&P 500 Index
. The stock trades at a price-to-earnings ratio of 10, a discount to chemical peers. The shares offer a 2.7% dividend yield.
1. American Physicians Service Group
(AMPH) - Get Report
sells medical-liability insurance and manages investments.
The numbers
: Third-quarter profit fell 10% to $6.4 million, or 92 cents a share. Revenue advanced 13% to $22 million. The company's operating margin narrowed from 56% to 43%. American Physicians Service Group has an admirable financial position, with $30 million of cash and $6.6 million of debt.
The stock
: American Physicians Service Group advanced 6% during the past year, trailing major U.S. indices. The stock trades at a price-to-earnings ratio of 9, a discount to insurance peers. The shares offer a 1.3% dividend yield.









