Manitex International (NASDAQ: MNTX) and Kadant (NYSE:KAI) are both small-cap industrial products companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, analyst recommendations, risk and valuation.

Earnings & Valuation

This table compares Manitex International and Kadant’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Manitex International $274.79 million 0.55 $6.67 million ($2.50) -3.63
Kadant $418.86 million 2.32 $67.05 million $3.03 29.18

Kadant has higher revenue and earnings than Manitex International. Manitex International is trading at a lower price-to-earnings ratio than Kadant, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Manitex International and Kadant, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Manitex International 0 0 2 0 3.00
Kadant 0 0 3 0 3.00

Manitex International presently has a consensus target price of $10.00, indicating a potential upside of 10.13%. Kadant has a consensus target price of $76.67, indicating a potential downside of 13.27%. Given Manitex International’s higher possible upside, analysts plainly believe Manitex International is more favorable than Kadant.

Profitability

This table compares Manitex International and Kadant’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Manitex International -15.69% 2.50% 0.78%
Kadant 8.10% 12.68% 7.64%

Risk and Volatility

Manitex International has a beta of 2.07, meaning that its stock price is 107% more volatile than the S&P 500. Comparatively, Kadant has a beta of 1.33, meaning that its stock price is 33% more volatile than the S&P 500.

Insider and Institutional Ownership

60.7% of Manitex International shares are owned by institutional investors. Comparatively, 91.1% of Kadant shares are owned by institutional investors. 6.8% of Manitex International shares are owned by insiders. Comparatively, 5.6% of Kadant shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

Kadant pays an annual dividend of $0.84 per share and has a dividend yield of 1.0%. Manitex International does not pay a dividend. Kadant pays out 27.7% of its earnings in the form of a dividend. Kadant has raised its dividend for 3 consecutive years.

Summary

Kadant beats Manitex International on 11 of the 15 factors compared between the two stocks.

About Manitex International

Manitex International, Inc. is a provider of engineered specialty lifting and loading products. The Company operates in three business segments: the Lifting Equipment segment, the A.S.V., LLC (ASV) segment and the Equipment Distribution segment. Through its Lifting Equipment segment, the Company designs, manufactures and distributes a diverse group of products that serve various functions and are used in a range of industries. In the ASV segment, the Company manufactures a line of compact rubber tracked and skid steer loaders. In the Equipment Distribution segment, the Company markets products used primarily for infrastructure development and commercial construction applications that include road and bridge construction, general contracting, roofing, scrap handling, and sign construction and maintenance. The Company, through its subsidiary Manitex, Inc., markets a line of boom trucks, truck cranes and sign cranes.

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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