Comfort Systems USA (FIX) and Kaman Corporation (KAMN) Head-To-Head Review
Comfort Systems USA (NYSE: FIX) and Kaman Corporation (NYSE:KAMN) are both small-cap construction companies, but which is the better stock? We will compare the two businesses based on the strength of their profitabiliy, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.
Valuation and Earnings
This table compares Comfort Systems USA and Kaman Corporation’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Comfort Systems USA||$1.67 billion||0.76||$129.25 million||$1.67||20.33|
|Kaman Corporation||$1.77 billion||0.80||$161.23 million||$1.85||27.56|
Kaman Corporation has higher revenue and earnings than Comfort Systems USA. Comfort Systems USA is trading at a lower price-to-earnings ratio than Kaman Corporation, indicating that it is currently the more affordable of the two stocks.
Comfort Systems USA pays an annual dividend of $0.30 per share and has a dividend yield of 0.9%. Kaman Corporation pays an annual dividend of $0.80 per share and has a dividend yield of 1.6%. Comfort Systems USA pays out 18.0% of its earnings in the form of a dividend. Kaman Corporation pays out 43.2% 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. Comfort Systems USA has raised its dividend for 2 consecutive years and Kaman Corporation has raised its dividend for 4 consecutive years. Kaman Corporation is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares Comfort Systems USA and Kaman Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Comfort Systems USA||3.77%||16.52%||8.35%|
This is a summary of recent ratings and target prices for Comfort Systems USA and Kaman Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Comfort Systems USA||0||2||3||0||2.60|
Comfort Systems USA presently has a consensus target price of $59.50, suggesting a potential upside of 75.26%. Kaman Corporation has a consensus target price of $56.67, suggesting a potential upside of 11.15%. Given Comfort Systems USA’s stronger consensus rating and higher possible upside, research analysts plainly believe Comfort Systems USA is more favorable than Kaman Corporation.
Institutional & Insider Ownership
94.1% of Comfort Systems USA shares are owned by institutional investors. Comparatively, 99.1% of Kaman Corporation shares are owned by institutional investors. 3.5% of Comfort Systems USA shares are owned by company insiders. Comparatively, 2.4% of Kaman Corporation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Volatility and Risk
Comfort Systems USA has a beta of 1.26, indicating that its stock price is 26% more volatile than the S&P 500. Comparatively, Kaman Corporation has a beta of 0.69, indicating that its stock price is 31% less volatile than the S&P 500.
Comfort Systems USA beats Kaman Corporation on 9 of the 17 factors compared between the two stocks.
Comfort Systems USA Company Profile
Comfort Systems USA, Inc. is a provider of mechanical contracting services, which principally includes heating, ventilation and air conditioning (HVAC), plumbing, piping and controls, as well as off-site construction, electrical, monitoring and fire protection. As of December 31, 2016, the Company installed, maintained, repaired and replaced products and systems throughout its 35 operating units in 84 cities and 91 locations throughout the United States. The Company operates primarily in the commercial, industrial and institutional HVAC markets and offers services in the industrial, healthcare, education, office, technology, retail and government facilities. The Company provides a range of construction, renovation, expansion, maintenance, repair and replacement services for mechanical and related systems in commercial, industrial and institutional properties. The Company also provides remote monitoring of temperature, pressure, humidity and air flow for HVAC systems.
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.
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