Critical Contrast: Luxfer (NYSE:LXFR) vs. Kornit Digital (NASDAQ:KRNT)

Luxfer (NYSE:LXFR) and Kornit Digital (NASDAQ:KRNT) are both small-cap industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, profitability, risk, analyst recommendations, institutional ownership, dividends and earnings.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Luxfer and Kornit Digital, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Luxfer	0	2	0	1	2.67
Kornit Digital	1	3	2	0	2.17

Kornit Digital has a consensus target price of $21.50, indicating a potential upside of 41.73%. Given Kornit Digital’s higher probable upside, analysts plainly believe Kornit Digital is more favorable than Luxfer.

Institutional and Insider Ownership

90.8% of Luxfer shares are owned by institutional investors. Comparatively, 92.8% of Kornit Digital shares are owned by institutional investors. 2.0% of Luxfer shares are owned by insiders. Comparatively, 0.2% of Kornit Digital shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Luxfer and Kornit Digital”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Luxfer	$384.60 million	1.21	$7.70 million	$0.30	57.48
Kornit Digital	$208.20 million	3.13	-$13.52 million	($0.48)	-31.60

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

Volatility and Risk

Luxfer has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500. Comparatively, Kornit Digital has a beta of 1.74, indicating that its stock price is 74% more volatile than the S&P 500.

Profitability

This table compares Luxfer and Kornit Digital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Luxfer	2.20%	12.22%	7.23%
Kornit Digital	-9.42%	-1.00%	-0.91%

Summary

Luxfer beats Kornit Digital on 10 of the 15 factors compared between the two stocks.

About Luxfer

Luxfer Holdings PLC, together with its subsidiaries, designs, manufactures, and supplies high-performance materials, components, and high-pressure gas containment devices for defense and first response, healthcare, transportation, and general industrial applications. The company operates through three segments: Elektron, Gas Cylinders, and graphic Arts. The Elektron segment focuses on specialty materials based primarily on magnesium and zirconium. This segment also provides magnesium alloys for use in aerospace, healthcare, and oil and gas applications; magnesium powders for use in countermeasure flares, as well as heater meals; and zirconium-based materials and oxides used as catalysts and in the manufacture of advanced ceramics, fiber-optic fuel cells, pharmaceuticals, and other performance products. The Gas Cylinders segment manufactures and markets specialized products using carbon composites and aluminum alloys, including pressurized cylinders for use in various applications comprising self-contained breathing apparatus (SCBA) for firefighters, containment of oxygen, and other medical gases for healthcare, alternative fuel vehicles, and general industrial applications. The Graphic Art segments provides magnesium photo-engraving plates, engraving metals, and etching chemicals. This segment also offers magnesium, copper, and zinc photo-engraving plates for graphic arts and luxury packaging; developer solutions; and solid wrought magnesium slab and sheet. Luxfer Holdings PLC has operations in the United States, the United Kingdom, Japan, Germany, Canada, rest of Europe, the Asia Pacific, and internationally. The company was founded in 1898 and is headquartered in Milwaukee, Wisconsin.

About Kornit Digital

Kornit Digital Ltd. develops, designs, and markets digital printing solutions for the fashion, apparel, and home decor segments of printed textile industry in the United States, Europe, the Middle East, Africa, the Asia Pacific, and internationally. Its solutions include digital printing systems, ink and other consumables, associated software, and value-added services. The company's products and services include direct-to-garment printing platform for smaller industrial operators to mass producers; NeoPigment ink and other consumables; QuickP designer software; and system upgrade kits, maintenance and support, consulting, and professional services. It serves decorators, online businesses, brand owners, and contract printers. Kornit Digital Ltd. was incorporated in 2002 and is headquartered in Rosh Haayin, Israel.