In the wake of recent market turbulence sparked by President Trump's announcement of sweeping tariffs, major U.S. stock indexes have experienced significant declines, with the S&P 500 and Nasdaq Composite enduring some of their worst days since 2020. Amid this volatility, small-cap stocks within the S&P 600 are drawing attention as investors seek opportunities that may be less impacted by international trade tensions and more focused on domestic growth potential. In such an environment, identifying small-cap companies with strong fundamentals and insider activity can offer insights into potential resilience and value in a challenging economic landscape.
Top 10 Undervalued Small Caps With Insider Buying In The United States
Overview: Citizens & Northern operates as a community banking institution with a market cap of approximately $0.36 billion, focusing on providing financial services primarily through its community banking segment.
Operations: The company's revenue primarily comes from community banking, with recent figures showing $106.13 million. Operating expenses are significant, reaching $74.26 million in the latest period, with general and administrative expenses accounting for $60.35 million of that total. The net income margin has shown variability, most recently recorded at 24.26%.
PE: 11.5x
Citizens & Northern, a smaller player in the financial sector, showcases potential for growth with earnings projected to rise 8.6% annually. Despite a low allowance for bad loans at 84%, insider confidence is evident through recent share purchases. The company reported increased net income of US$8.17 million for Q4 2024, doubling from US$4.26 million the previous year, alongside steady dividends and no recent share buybacks completed by December 2024.
Overview: CompX International is a company that manufactures security products and marine components, with a market cap of approximately $0.25 billion.
Operations: CompX International generates revenue primarily from its Security Products segment, contributing $115.24 million, and Marine Components segment, contributing $30.70 million. The company's cost of goods sold (COGS) significantly impacts its gross profit margin, which has shown variability over time with a recent figure of 28.34%.
PE: 15.1x
CompX International, a smaller player in its industry, has seen insider confidence with recent share purchases. Despite a dip in sales to US$145.94 million from US$161.29 million and net income dropping to US$16.59 million for 2024, the company maintains regular dividends at US$0.30 per share, reflecting stability amidst challenges. With external borrowing as its sole funding source, potential investors should weigh this risk against the company's consistent dividend payouts and ongoing insider interest.
Overview: Compass Minerals International operates in the production and distribution of salt and plant nutrition products, with a market capitalization of approximately $1.37 billion.
Operations: The company generates revenue primarily from its Salt and Plant Nutrition segments, with the Salt segment contributing significantly more. Over recent periods, the gross profit margin has shown a declining trend, reaching 14.61% in late 2024. Operating expenses have fluctuated but generally remained substantial compared to gross profit figures.
PE: -2.5x
Compass Minerals, a smaller US company, is navigating financial challenges with strategic initiatives aimed at enhancing profitability in its core Salt and Plant Nutrition sectors. Recent cost-cutting measures include downsizing over 10% of the corporate workforce and winding down its fire retardant business. Despite a net loss of US$23.6 million for Q1 2025, this was an improvement from the previous year's larger deficit. The company anticipates growth with earnings forecasted to rise by 63.77% annually, suggesting potential value for investors seeking opportunities in smaller market players amidst insider confidence reflected through share purchases earlier this year.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
