Five Potential Small-Cap Value Plays

Generally speaking, small-cap stocks tend to have less interest from large institutional investors and research analysts. It could be argued that the small-cap market is less efficient than more widely followed stocks.

Here are five small-caps yielding over 5 percent, trading at a trailing P/E of 15 or less, and having a majority of "Strong Buy" ratings - all potentially positive catalysts.

Granted, smaller companies carry additional risks. Investors should tread cautiously when looking at these names.

Crown Crafts (NASDAQ: CRWS) - Crown Crafts sells infant bedding, bibs, instant soft goods and accessories to retailers. Shares have soared in 2012 and continue to look compelling. Year-to-date, Crown Crafts has jumped almost 66 percent, including a better than 3 percent gain on Thursday. At current levels, Crown Crafts has a market-cap of around $53 million. Furthermore, the stock is yielding around 6 percent at current levels.

The chart pattern is also interesting. Crown Crafts has formed a high consolidation pattern and has been basing since the beginning of April. If the stock were to begin breaking out to the upside from this basing area, it could run to considerably higher prices in short order.

Friedman Industries (NYSE: FRD) - This tiny basic materials stock trades very little volume and has a market cap of only $68 million. The Humble, Texas-based company is engaged in steel processing, pipe manufacturing and processing, and steel and pipe distribution. Shares appear cheap, trading at a trailing P/E of 8.40 and a forward P/E of under 6. The stock looks like it has been effected by deteriorating economic sentiment, and has come off of its highs from earlier in the year. Year-to-date, Friedman is down a little less than 4 percent. Friedman could certainly benefit from a boost of cyclical optimism. At current levels, there is a handsome dividend yield higher than 5 percent.

International Shipholding (NYSE: ISH) - This company operates a diversified fleet of United States and international flag vessels that provide international and domestic maritime transportation services to commercial and governmental customers. The stock has been chugging along over the years, and on the 10-year chart, International Shipholding is up 183 percent. Over the last year, however, shares are down more than 8 percent. Year-to-date, however, the stock has gained better than 2 percent. At current levels, International Shipholding trades at a trailing P/E of 8.98 and yields more than 5 percent.

Wayside Technology (NASDAQ: WSTG) - Wayside Technology Group, Inc. is an information technology (IT) channel company. The Company resells software and hardware developed by others, and provides technical services directly to its customers. Wayside started the year with a massive rally, but has since come off of its highs. The year-to-date high is $17.50, and its current price is $12.57. The company has a market cap of roughly $58 million and yields over 5 percent. Valuation looks reasonable on an earnings basis, with the stock trading at a trailing P/E of 10.00 and a forward P/E of 9.12.

Tortoise North American Energy (NYSE: TYN) - Tortoise is structured as a closed-end investment company and invests at least 80 percent of its total assets in the equity of energy companies with their primary operations in North America, including energy infrastructure, oil and gas exploitation, and energy shipping companies. Essentially, this is a small-cap vehicle to gain exposure to the energy sector, including MLPs. The advantage of this security is its dividend yield, which is over 6 percent. The stock has been hit in recent months as the energy sector has fallen along with crude oil. Nevertheless, TYN is still up a little less than 1 percent in 2012.