Woodward (NASDAQ: WWD) and Kaman (NYSE:KAMN) are both industrials companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, institutional ownership, risk and analyst recommendations.
Woodward pays an annual dividend of $0.50 per share and has a dividend yield of 0.6%. Kaman pays an annual dividend of $0.80 per share and has a dividend yield of 1.4%. Woodward pays out 15.8% of its earnings in the form of a dividend. Kaman pays out 44.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Woodward has raised its dividend for 3 consecutive years.
This is a summary of recent ratings and recommmendations for Woodward and Kaman, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Woodward currently has a consensus price target of $77.71, indicating a potential downside of 2.84%. Kaman has a consensus price target of $60.00, indicating a potential upside of 2.95%. Given Kaman’s higher probable upside, analysts clearly believe Kaman is more favorable than Woodward.
This table compares Woodward and Kaman’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares Woodward and Kaman’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Woodward||$2.10 billion||2.33||$200.50 million||$3.16||25.31|
|Kaman||$1.81 billion||0.90||$58.85 million||$1.81||32.20|
Woodward has higher revenue and earnings than Kaman. Woodward is trading at a lower price-to-earnings ratio than Kaman, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Woodward has a beta of 1.24, indicating that its stock price is 24% more volatile than the S&P 500. Comparatively, Kaman has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500.
Insider & Institutional Ownership
72.1% of Woodward shares are owned by institutional investors. Comparatively, 92.6% of Kaman shares are owned by institutional investors. 6.2% of Woodward shares are owned by company insiders. Comparatively, 2.4% of Kaman shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Woodward beats Kaman on 13 of the 17 factors compared between the two stocks.
Woodward, Inc. is an independent designer, manufacturer and service provider of energy control and optimization solutions. The Company designs, produces and services energy control products for various applications. The Company’s segments include Aerospace and Industrial. The Company’s Aerospace segment designs, manufactures and services systems and products for the management of fuel, air, combustion and motion control. The Company’s Industrial segment designs, produces and services systems and products for the management of fuel, air, fluids, gases, electricity, motion and combustion. The Company has production and assembly facilities in the United States, Europe and Asia and South America, and promotes its products and services throughout the world. The Company offers solutions for the aerospace, industrial and energy markets. The Company focuses primarily on serving original equipment manufacturers (OEMs) and equipment packagers.
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.
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