When looking for value opportunities among capital-intensive businesses, investors could be interested in stocks with price-to-tangible book value ratios that are more appealing than their respective industry medians.
The price-to-tangible book value ratio is preferred to the price-book ratio for these publicly traded companies since the appraisal of their business mainly derives from tangible assets.
Kandi Technologies Group
The first stock that meets the criteria is Kandi Technologies Group Inc. (KNDI, Financial), a Chinese developer, manufacturer and distributor of products and parts for electric vehicles and off-road vehicles.
The company has a price-to-tangible book value ratio of approximately 0.65, which is more appealing than the industry median of 1.96 and ranks higher than 84.24% of the 1,123 competitors that operate in the vehicles and parts industry.
The share price was approximately $3.38 at close on Jan 7. The tangible book value per share was approximately $5.22 as of the September 2021 quarter.
The stock has a market capitalization of $261.56 million and a 52-week range of $3.09 to $10.98.
GuruFocus assigned a score of 7 out of 10 for the company's financial strength rating and a 3 out of 10 rating for its profitability.
On Wall Street, the stock has one recommendation rating of buy and a target price of $5 per share.
Yamana Gold
The second stock that makes the cut is Yamana Gold Inc. (AUY, Financial), a Canadian precious metals explorer, developer and producer with mineral assets in Canada and South America.
The company has a price-to-tangible book value ratio of approximately 0.95, which is more appealing than the industry median of 2.26, ranking higher than 83% of 2,101 companies that operate in the metals and mining industry.
The stock closed at $3.9 per share on Jan. 7, while the tangible book value per share was $4.10 as of the third quarter.
The stock has a market capitalization of $3.71 billion and a 52-week range of $3.70 to $5.51.
GuruFocus assigned a score of 5 out of 10 for both the company's financial strength rating and its profitability.
On Wall Street, the stock has a median recommendation rating of overweight with an average target price of $6.52 per share.
Danaos
The third stock that qualifies is Danaos Corp. (DAC, Financial), a Greek owner and operator of container ships on global waters. In particular, the company offers maritime transport services, such as chartering its ships to liner carriers. Currently, it has a fleet of 65 container ships with a total cargo capacity of approximately 404,000 20-foot equivalents (TEUs).
The company has a price-to-tangible book value ratio of approximately 0.75, which is more appealing than the industry median of 1.60, ranking better than 79% of 833 companies that operate in the transportation industry.
The stock was trading at $70.06 per share at close on Jan 7, while the tangible book value per share was $93.35 as of the September 2021 quarter.
The stock has a market capitalization of $1.44 billion and a 52-week range of $24.20 to $89.41.
GuruFocus assigned a score of 4 out of 10 for the company's financial strength rating and a 6 out of 10 rating for its profitability.
On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $93.75 per share.
Newpark Resources
The fourth stock that qualifies is Newpark Resources Inc. (NR, Financial), a Texas-based provider of products, rentals and services primarily to the oil and natural gas exploration and production industries. The company has customers in North America, Europe, the Middle East and Africa, as well as select countries in the Asia-Pacific and Latin America.
The company has a price-to-tangible book value ratio of 0.77, which is more appealing than the industry median of 1.44, ranking better than 77% of 942 companies that operate in the oil and gas industry.
The stock was trading at $3.34 per share at close on Jan. 7, while the tangible book value per share was $4.35 as of the third quarter.
The stock has a market capitalization of $308.14 million and a 52-week range of $1.92 to $4.08.
GuruFocus assigned a score of 4 out of 10 for the company's financial strength rating and a 5 out of 10 rating for its profitability.
On Wall Street, the stock has one recommendation rating of overweight and a target price of $4 per share.
