Comparing Rectitude (NASDAQ:RECT) & Acme United (NYSE:ACU)

Acme United (NYSE:ACU) and Rectitude (NASDAQ:RECT) are both small-cap consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, earnings, dividends, valuation, risk and institutional ownership.

Institutional and Insider Ownership

62.1% of Acme United shares are held by institutional investors. 34.1% of Acme United shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for Acme United and Rectitude, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Acme United	0	0	0	1	4.00
Rectitude	0	0	0	0	0.00

Profitability

This table compares Acme United and Rectitude’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Acme United	10.25%	9.70%	6.10%
Rectitude	N/A	N/A	N/A

Earnings & Valuation

This table compares Acme United and Rectitude”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Acme United	$190.49 million	0.73	$17.79 million	$4.89	7.63
Rectitude	$41.35 million	2.38	$2.49 million	N/A	N/A

Acme United has higher revenue and earnings than Rectitude.

Summary

Acme United beats Rectitude on 9 of the 10 factors compared between the two stocks.

About Acme United

Acme United Corporation supplies cutting, measuring, first aid, and sharpening products to the school, home, office, hardware, sporting goods, and industrial markets in the United States, Canada, Europe, and internationally. The company offers scissors, shears, knives, rulers, pencil sharpeners, paper trimmers, safety cutters, lettering products, glue guns, and other craft products under the Westcott brand name; and cutting tools under the Clauss brand. It also provides sharpening knives, scissors, chisels, skis, skates, and other edge under the DMT brand. In addition, the company offers first aid kit and safety solutions under the First Aid Only brand; portable eyewash solution and over-the-counter medication, including active ingredients aspirin, acetaminophen, and ibuprofen under the PhysiciansCare brand; bodily fluid and spill clean-up solution under the Spill Magic brand; various first aid kit, refill, and safety supplies, including CPR kits, burn kits, and automotive and emergency first aid kits under the First Aid Central; first aid kits for the promotional products industry under Safety Made brand; and alcohol prep pads, alcohol wipes, benzalkonium chloride wipes, various antiseptic wipes, castile soaps, and lens cleaning wipes under the Med-Nap brand. It sells its products directly and through its independent manufacturer representatives to wholesale, contract, and retail stationery distributors; office supply super stores, mass market retailers, industrial and medical distributors, school supply distributors, drug store retailers, sporting goods stores, hardware chains, and wholesale florists, as well as through its websites. The company was formerly known as Acme Shear Company and changed its name to Acme United Corporation in 1971. Acme United Corporation was founded in 1867 and is based in Shelton, Connecticut.

About Rectitude

Rectitude Holdings Ltd is principally involved in the provision of safety equipment, encompassing essential items such as personal protective clothing, gloves, safety footwear, personal fall arrest systems, portable fire extinguishers and traffic products. The Company also offers auxiliary products such as industrial hardware tools and electrical hardware required for construction sites. Rectitude Holdings Ltd is based in SINGAPORE.