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

Volatility & Risk

Kadant has a beta of 1.33, indicating that its stock price is 33% more volatile than the S&P 500. Comparatively, Kadant’s rivals have a beta of 1.49, indicating that their average stock price is 49% more volatile than the S&P 500.

Insider and 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 insiders. Comparatively, 12.1% of shares of all “Industrial Machinery” companies 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.

Valuation & Earnings

This table compares Kadant and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Kadant $418.86 million $67.05 million 30.87
Kadant Competitors $696.10 million $107.92 million 46.11

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

Analyst Recommendations

This is a breakdown of current ratings and price targets for Kadant and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kadant 0 0 3 0 3.00
Kadant Competitors 93 397 335 25 2.34

Kadant currently has a consensus target price of $90.50, suggesting a potential downside of 3.26%. As a group, “Industrial Machinery” companies have a potential upside of 13.62%. Given Kadant’s rivals higher probable upside, analysts plainly believe Kadant has less favorable growth aspects than its rivals.

Profitability

This table compares Kadant and its rivals’ 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%

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 rivals beat Kadant on 8 of the 15 factors compared.

Kadant Company Profile

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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