Kaman (NYSE: KAMN) and Hudson Technologies (NASDAQ:HDSN) are both small-cap industrial products companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, profitability, risk and earnings.
Volatility & Risk
Kaman has a beta of 0.79, meaning that its stock price is 21% less volatile than the S&P 500. Comparatively, Hudson Technologies has a beta of 1.23, meaning that its stock price is 23% more volatile than the S&P 500.
93.9% of Kaman shares are owned by institutional investors. Comparatively, 76.1% of Hudson Technologies shares are owned by institutional investors. 2.4% of Kaman shares are owned by insiders. Comparatively, 18.0% of Hudson Technologies shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This is a summary of current recommendations for Kaman and Hudson Technologies, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Kaman presently has a consensus price target of $65.00, indicating a potential upside of 7.30%. Hudson Technologies has a consensus price target of $7.75, indicating a potential upside of 61.80%. Given Hudson Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe Hudson Technologies is more favorable than Kaman.
Kaman pays an annual dividend of $0.80 per share and has a dividend yield of 1.3%. Hudson Technologies does not pay a dividend. Kaman pays out 35.9% of its earnings in the form of a dividend. Kaman has raised its dividend for 3 consecutive years.
Earnings and Valuation
This table compares Kaman and Hudson Technologies’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Kaman||$1.81 billion||0.93||$49.82 million||$2.23||27.17|
|Hudson Technologies||$140.38 million||1.45||$11.15 million||$0.47||10.19|
Kaman has higher revenue and earnings than Hudson Technologies. Hudson Technologies is trading at a lower price-to-earnings ratio than Kaman, indicating that it is currently the more affordable of the two stocks.
This table compares Kaman and Hudson Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Hudson Technologies beats Kaman on 10 of the 17 factors compared between the two stocks.
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.
About Hudson Technologies
Hudson Technologies, Inc. is a refrigerant services company. The Company’s products and services are primarily used in commercial air conditioning, industrial processing and refrigeration systems, and include refrigerant and industrial gas sales, refrigerant management services consisting primarily of reclamation of refrigerants and RefrigerantSide Services performed at a customer’s site, consisting of system decontamination to remove moisture, oils and other contaminants. In addition, the Company’s SmartEnergy OPS service is a Web-based real time continuous monitoring service applicable to a facility’s refrigeration systems and other energy systems. The Company’s Chiller Chemistry and Chill Smart services are also predictive and diagnostic service offerings. The Company sells reclaimed and virgin (new) refrigerants to a variety of customers in various segments of the air conditioning and refrigeration industry, and sells industrial gases to a variety of industry segments.
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