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

Profitability

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

Net Margins Return on Equity Return on Assets
Key Technology 2.58% 5.27% 3.31%
Key Technology Competitors -24.03% 10.44% 4.26%

Volatility and Risk

Key Technology has a beta of 1.09, indicating that its share price is 9% more volatile than the S&P 500. Comparatively, Key Technology’s competitors have a beta of 1.51, indicating that their average share price is 51% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Key Technology and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Key Technology 0 0 0 0 N/A
Key Technology Competitors 44 293 293 8 2.42

As a group, “Industrial Machinery” companies have a potential upside of 5.90%. Given Key Technology’s competitors higher probable upside, analysts plainly believe Key Technology has less favorable growth aspects than its competitors.

Institutional and Insider Ownership

44.6% of Key Technology shares are held by institutional investors. Comparatively, 63.5% of shares of all “Industrial Machinery” companies are held by institutional investors. 29.4% of Key Technology shares are held by insiders. Comparatively, 12.1% of shares of all “Industrial Machinery” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Key Technology and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Key Technology $129.89 million $10.16 million 34.42
Key Technology Competitors $696.10 million $107.92 million 51.16

Key Technology’s competitors have higher revenue and earnings than Key Technology. Key Technology 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.

Summary

Key Technology competitors beat Key Technology on 8 of the 10 factors compared.

About Key Technology

Key Technology, Inc. is a supplier of process automation solutions to the food processing industry and other industries, such as tobacco and pharmaceuticals. The Company designs, manufactures, sells and services automation equipment that processes product streams of discrete pieces. These systems integrate electro-optical automated inspection and digital sorting systems with other processing systems that include specialized conveying and preparation equipment. The Company provides parts and service for each of its product lines to customers around the world. Its automated inspection systems are used in various applications to detect and remove defects and foreign material from the product stream. It offers conveying and processing equipment, which are utilized throughout various industries to move and process product within a production plant. Its Integrated Solutions Group (ISG) provides integrated whole-line solutions. It has an installed base of inspection and processing systems.

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