Head to Head Review: Kaman Corporation (KAMN) vs. KLX (KLXI)
Kaman Corporation (NYSE: KAMN) and KLX (NASDAQ:KLXI) are both industrial products companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, profitability, analyst recommendations, institutional ownership, dividends, valuation and earnings.
Insider and Institutional Ownership
93.7% of Kaman Corporation shares are held by institutional investors. 2.4% of Kaman Corporation shares are held by company insiders. Comparatively, 1.8% of KLX shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This table compares Kaman Corporation and KLX’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk & Volatility
Kaman Corporation has a beta of 0.7, suggesting that its stock price is 30% less volatile than the S&P 500. Comparatively, KLX has a beta of 1.29, suggesting that its stock price is 29% more volatile than the S&P 500.
Kaman Corporation pays an annual dividend of $0.80 per share and has a dividend yield of 1.4%. KLX does not pay a dividend. Kaman Corporation pays out 43.2% of its earnings in the form of a dividend. Kaman Corporation has increased its dividend for 2 consecutive years.
This is a breakdown of recent recommendations for Kaman Corporation and KLX, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Kaman Corporation presently has a consensus target price of $56.67, suggesting a potential upside of 1.59%. KLX has a consensus target price of $55.00, suggesting a potential upside of 3.91%. Given KLX’s stronger consensus rating and higher possible upside, analysts plainly believe KLX is more favorable than Kaman Corporation.
Valuation & Earnings
This table compares Kaman Corporation and KLX’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Kaman Corporation||$1.77 billion||0.88||$161.23 million||$1.85||30.15|
|KLX||$1.60 billion||1.70||$240.70 million||$1.50||35.29|
KLX has higher revenue, but lower earnings than Kaman Corporation. Kaman Corporation is trading at a lower price-to-earnings ratio than KLX, indicating that it is currently the more affordable of the two stocks.
Kaman Corporation beats KLX on 9 of the 17 factors compared between the two stocks.
Kaman Corporation Company Profile
Kaman Corporation conducts business in the aerospace and distribution markets. The Company operates through two segments: Distribution and Aerospace. The Company’s brands include KAflex, KAron and K-MAX. Distribution segment is a power transmission, motion control, and fluid power industrial distributor with operations throughout the United States. Distribution segment conducts business in the mechanical power transmission and bearings, electrical, automation and control, and fluid power product platforms and provides total solutions from system design and integration to machine parts and services to the national manufacturing industry. Aerospace segment produces and markets aircraft bearings and components; super precision, miniature ball bearings; metallic and composite aerostructures for commercial, military and general aviation fixed and rotary wing aircraft, and safe and arming solutions for missile and bomb systems for the United States and allied militaries.
KLX Company Profile
KLX Inc. (KLX) is the distributor and service provider of aerospace fasteners and consumables. The Company offers ranges of aerospace hardware and consumables and inventory management services across the world. The Company operates through two segments: Aerospace Solutions Group (ASG) and Energy Services Group (ESG). The Company’s ASG segment service offerings include inventory management and replenishment, creative and differential supply chain solutions, such as third-party logistics programs, special packaging and bar-coding, parts kitting, quality assurance testing and a range of purchasing assistance programs, plus the electronic data interchange capability. The Company’s ESG segment products and services include onshore completion services, wireline services, fishing services and tools, down-hole completion and production services, pressure control, accommodations and related surface rental equipment, and remanufacturing shops.
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