Financial Analysis: BrewBilt Manufacturing (OTCMKTS:BBRW) vs. Kadant (NYSE:KAI)

Kadant (NYSE:KAI) and BrewBilt Manufacturing (OTCMKTS:BBRW) are both industrials companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, profitability, earnings, analyst recommendations, institutional ownership and dividends.

Institutional and Insider Ownership

96.1% of Kadant shares are held by institutional investors. 1.2% of Kadant shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations for Kadant and BrewBilt Manufacturing, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kadant	0	2	1	0	2.33
BrewBilt Manufacturing	0	0	0	0	0.00

Kadant presently has a consensus target price of $340.00, indicating a potential upside of 1.98%. Given Kadant’s stronger consensus rating and higher probable upside, analysts plainly believe Kadant is more favorable than BrewBilt Manufacturing.

Volatility & Risk

Kadant has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500. Comparatively, BrewBilt Manufacturing has a beta of 2.43, indicating that its share price is 143% more volatile than the S&P 500.

Earnings & Valuation

This table compares Kadant and BrewBilt Manufacturing”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kadant	$1.05 billion	3.73	$111.60 million	$8.65	38.54
BrewBilt Manufacturing	N/A	N/A	N/A	($0.24)	N/A

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

Profitability

This table compares Kadant and BrewBilt Manufacturing’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kadant	9.96%	11.97%	7.41%
BrewBilt Manufacturing	N/A	N/A	N/A

Summary

Kadant beats BrewBilt Manufacturing on 10 of the 11 factors compared between the two stocks.

About Kadant

Kadant Inc. supplies technologies and engineered systems worldwide. It operates in three segments: Flow Control, Industrial Processing, and Material Handling. The Flow Control segment develops, manufactures, and markets fluid-handling systems and equipment, such as rotary joints, syphons, turbulator bars, expansion joints, and engineered steam and condensate systems; and doctoring, cleaning, and filtration systems and related consumables consisting of doctor systems and holders, doctor blades, cleaning shower and fabric-conditioning systems, forming systems and wear surfaces, and water-filtration systems. The Industrial Processing segment develops, manufactures, and markets ring and rotary debarkers, stranders, chippers, engineered knife systems, industrial automation and control, recycling and approach flow systems, and virgin pulping process equipment for use in the packaging, tissue, wood products, and alternative fuel industries. The Material Handling segment offers conveying and vibratory equipment, and baling products; and manufactures and sells biodegradable absorbent granules for carriers in agricultural, home lawn and garden, professional lawn, turf, and ornamental applications, as well as for oil and grease absorption. The company markets and sells its products, services, and systems through direct sales, independent sales agents, and distributors. The company was formerly known as Thermo Fibertek, Inc. and changed its name to Kadant Inc. in July 2001. Kadant Inc. was incorporated in 1991 and is headquartered in Westford, Massachusetts.

About BrewBilt Manufacturing

BrewBilt Manufacturing Inc. custom designs, hand crafts, and integrates brewing, fermentation, and distillation processing systems for the craft beer industry in California. The company was founded in 2014 and is based in Grass Valley, California.