John Bean Technologies Corporation (JBT) vs. Kadant (KAI) Financial Analysis
John Bean Technologies Corporation (NYSE: JBT) and Kadant (NYSE:KAI) are both industrial products companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, institutional ownership, valuation, analyst recommendations, risk, profitability and earnings.
Insider and Institutional Ownership
99.3% of John Bean Technologies Corporation shares are held by institutional investors. Comparatively, 90.7% of Kadant shares are held by institutional investors. 1.8% of John Bean Technologies Corporation shares are held by company insiders. Comparatively, 5.6% of Kadant shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This is a breakdown of recent recommendations and price targets for John Bean Technologies Corporation and Kadant, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|John Bean Technologies Corporation||0||2||5||0||2.71|
John Bean Technologies Corporation presently has a consensus price target of $99.33, suggesting a potential downside of 1.75%. Kadant has a consensus price target of $90.50, suggesting a potential downside of 8.17%. Given John Bean Technologies Corporation’s higher possible upside, equities research analysts clearly believe John Bean Technologies Corporation is more favorable than Kadant.
Earnings and Valuation
This table compares John Bean Technologies Corporation and Kadant’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|John Bean Technologies Corporation||$1.49 billion||2.15||$166.80 million||$2.59||39.03|
|Kadant||$418.86 million||2.59||$67.05 million||$3.03||32.52|
John Bean Technologies Corporation has higher revenue and earnings than Kadant. Kadant is trading at a lower price-to-earnings ratio than John Bean Technologies Corporation, indicating that it is currently the more affordable of the two stocks.
John Bean Technologies Corporation pays an annual dividend of $0.40 per share and has a dividend yield of 0.4%. Kadant pays an annual dividend of $0.84 per share and has a dividend yield of 0.9%. John Bean Technologies Corporation pays out 15.4% of its earnings in the form of a dividend. Kadant pays out 27.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. John Bean Technologies Corporation has increased its dividend for 4 consecutive years and Kadant has increased its dividend for 3 consecutive years.
Volatility & Risk
John Bean Technologies Corporation has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500. Comparatively, Kadant has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500.
This table compares John Bean Technologies Corporation and Kadant’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|John Bean Technologies Corporation||5.32%||29.18%||6.95%|
John Bean Technologies Corporation beats Kadant on 9 of the 16 factors compared between the two stocks.
About John Bean Technologies Corporation
John Bean Technologies Corporation (JBT) is a technology solutions provider to the segments of the food and beverage industry with focus on proteins, liquid foods and automated system solutions. It operates through two segments: JBT FoodTech and JBT AeroTech. The JBT FoodTech segment designs, manufactures and services technologically food processing systems used for fruit juice production, frozen food production, in-container food production, automated systems and convenience food preparation by the food industry. The product offerings of its FoodTech businesses include Protein, Liquid Foods and Automated Systems. The JBT AeroTech segment designs, manufactures and services technologically airport ground support and gate equipment and provides services for airport authorities; airlines, airfreight, and ground handling companies; the defense contractors, and other industries. The product offerings of its AeroTech businesses include Mobile Equipment, Fixed Equipment and Airport Services.
Kadant Inc. is a supplier of equipment and components used in process industries. In addition, the Company manufactures granules made from papermaking by-products. Its segments include Papermaking Systems and Wood Processing Systems. The Company has a customer base, which includes paper and oriented strand board (OSB) manufacturers. Papermaking Systems segment is engaged in developing, manufacturing, and marketing equipment for the global papermaking and paper recycling industries. Its Papermaking Systems segment consists of product lines, including Stock-Preparation; Doctoring, Cleaning, & Filtration, and Fluid-Handling. The Company develops, manufactures and markets stranders and related equipment used in the production of OSB.
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