Lydall (NYSE: LDL) and Key Technology (NASDAQ:KTEC) are both small-cap multi-sector conglomerates companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, risk, institutional ownership, earnings, profitability, valuation and analyst recommendations.
Volatility and Risk
Lydall has a beta of 1.68, indicating that its stock price is 68% more volatile than the S&P 500. Comparatively, Key Technology has a beta of 1.06, indicating that its stock price is 6% more volatile than the S&P 500.
Institutional and Insider Ownership
88.4% of Lydall shares are owned by institutional investors. Comparatively, 44.9% of Key Technology shares are owned by institutional investors. 5.0% of Lydall shares are owned by company insiders. Comparatively, 29.4% of Key Technology shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Lydall and Key Technology’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Lydall||$640.28 million||1.26||$92.46 million||$2.45||19.04|
|Key Technology||$129.89 million||0.70||$10.16 million||$0.52||26.90|
Lydall has higher revenue and earnings than Key Technology. Lydall is trading at a lower price-to-earnings ratio than Key Technology, indicating that it is currently the more affordable of the two stocks.
This table compares Lydall and Key Technology’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings and price targets for Lydall and Key Technology, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Lydall presently has a consensus price target of $63.00, suggesting a potential upside of 35.05%. Given Lydall’s higher possible upside, analysts clearly believe Lydall is more favorable than Key Technology.
Lydall beats Key Technology on 11 of the 13 factors compared between the two stocks.
Lydall, Inc. designs and manufactures specialty engineered filtration media, industrial thermal insulating solutions, automotive thermal and acoustical barriers for filtration/separation and thermal/acoustical applications. The Company’s segments are Performance Materials, Technical Nonwovens, Thermal/Acoustical Metals and Thermal/Acoustical Fibers. The Performance Materials segment includes filtration, thermal insulation and life sciences filtration businesses. The Technical Nonwovens segment includes its industrial filtration and advanced materials products. The Thermal/Acoustical Metals segment includes its metal parts and related tooling used in automotive applications. The Thermal/Acoustical Fibers segment includes its fiber parts business and related tooling used in automotive applications. Its Filtration products include LydAir MG (Micro-Glass) Air Filtration Media, LydAir MB (Melt Blown) Air Filtration Media and Arioso Membrane Composite Media.
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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