Many small-cap stocks have limited Wall Street coverage, giving savvy investors the chance to act before everyone else catches on. But the flip side is that these businesses have increased downside risk because they lack the scale and staying power of their larger competitors.

These trade-offs can cause headaches for even the most seasoned professionals, which is why we started StockStory - to help you separate the good companies from the bad. Keeping that in mind, here is one small-cap stock that could be the next 100 bagger and two that could be down big.

Two Small-Cap Stocks to Sell:

Lindblad Expeditions (LIND)

Market Cap: $483.1 million

Founded by explorer Sven-Olof Lindblad in 1979, Lindblad Expeditions (NASDAQ:LIND) offers cruising experiences to remote destinations in partnership with National Geographic.

Why Is LIND Risky?

1. Annual revenue growth of 13.4% over the last five years was below our standards for the consumer discretionary sector

2. Incremental sales over the last five years were much less profitable as its earnings per share fell by 73% annually while its revenue grew

3. Projected 3.8 percentage point decline in its free cash flow margin next year reflects the company’s plans to increase its investments to defend its market position

Lindblad Expeditions’s stock price of $8.72 implies a valuation ratio of 4.3x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why LIND doesn’t pass our bar .

Integra LifeSciences (IART)

Market Cap: $1.29 billion

Founded in 1989 as a pioneer in regenerative medicine technology, Integra LifeSciences (NASDAQ:IART) develops and manufactures medical technologies for neurosurgery, wound care, and surgical reconstruction, including regenerative tissue products and surgical instruments.

Why Are We Out on IART?

1. Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion

2. Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 1.4% annually

3. Free cash flow margin dropped by 10.5 percentage points over the last five years, implying the company became more capital intensive as competition picked up

Integra LifeSciences is trading at $16.69 per share, or 6.7x forward price-to-earnings. To fully understand why you should be careful with IART, check out our full research report (it’s free) .

One Small-Cap Stock to Watch:

Thermon (THR)

Market Cap: $878.3 million

Creating the first packaged tracing systems, Thermon (NYSE:THR) is a leading provider of engineered industrial process heating solutions for process industries.