Head-To-Head Analysis: Lydall (LDL) versus Key Technology (NASDAQ:KTEC)

Lydall (NYSE: LDL) and Key Technology (NASDAQ:KTEC) are both small-cap multi-sector conglomerates companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, risk, institutional ownership, valuation, dividends and analyst recommendations.

Insider and Institutional Ownership

88.4% of Lydall shares are held by institutional investors. Comparatively, 44.9% of Key Technology shares are held by institutional investors. 5.0% of Lydall shares are held by insiders. Comparatively, 29.4% of Key Technology shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

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
Lydall 6.56% 17.43% 9.51%
Key Technology 2.58% 5.27% 3.31%

Analyst Ratings

This is a breakdown of recent ratings for Lydall and Key Technology, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lydall 0 1 1 0 2.50
Key Technology 0 0 0 0 N/A

Lydall presently has a consensus price target of $63.00, suggesting a potential upside of 35.05%. Given Lydall’s higher probable upside, equities analysts plainly believe Lydall is more favorable than Key Technology.

Earnings & Valuation

This table compares Lydall and Key Technology’s top-line 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.

Volatility and Risk

Lydall has a beta of 1.68, meaning that its stock price is 68% more volatile than the S&P 500. Comparatively, Key Technology has a beta of 1.06, meaning that its stock price is 6% more volatile than the S&P 500.

Summary

Lydall beats Key Technology on 11 of the 13 factors compared between the two stocks.

About Lydall

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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