Kadant (NYSE: KAI) is one of 18 public companies in the “Industrial Machinery” industry, but how does it weigh in compared to its competitors? We will compare Kadant to similar companies based on the strength of its dividends, valuation, earnings, analyst recommendations, risk, profitability and institutional ownership.

Earnings and Valuation

This table compares Kadant and its competitors gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Kadant $418.86 million $67.05 million 31.88
Kadant Competitors $696.10 million $107.92 million 49.52

Kadant’s competitors have higher revenue and earnings than Kadant. Kadant is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of current ratings and target prices for Kadant and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kadant 0 1 2 0 2.67
Kadant Competitors 44 290 285 7 2.41

Kadant presently has a consensus target price of $94.00, indicating a potential downside of 2.69%. As a group, “Industrial Machinery” companies have a potential upside of 9.01%. Given Kadant’s competitors higher probable upside, analysts clearly believe Kadant has less favorable growth aspects than its competitors.

Risk and Volatility

Kadant has a beta of 1.36, suggesting that its stock price is 36% more volatile than the S&P 500. Comparatively, Kadant’s competitors have a beta of 1.52, suggesting that their average stock price is 52% more volatile than the S&P 500.

Profitability

This table compares Kadant and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kadant 8.10% 12.68% 7.64%
Kadant Competitors -24.03% 10.43% 4.25%

Insider & Institutional Ownership

90.7% of Kadant shares are owned by institutional investors. Comparatively, 63.5% of shares of all “Industrial Machinery” companies are owned by institutional investors. 5.6% of Kadant shares are owned by company insiders. Comparatively, 12.0% of shares of all “Industrial Machinery” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Dividends

Kadant pays an annual dividend of $0.84 per share and has a dividend yield of 0.9%. Kadant pays out 27.7% of its earnings in the form of a dividend. As a group, “Industrial Machinery” companies pay a dividend yield of 1.1% and pay out 34.1% of their earnings in the form of a dividend. Kadant has increased its dividend for 3 consecutive years.

Summary

Kadant competitors beat Kadant on 8 of the 15 factors compared.

About Kadant

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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