Head-To-Head Analysis: Kadant (NYSE:KAI) versus Luxfer (NYSE:LXFR)

Luxfer (NYSE:LXFR) and Kadant (NYSE:KAI) are both industrials companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, dividends, earnings and risk.

Earnings and Valuation

This table compares Luxfer and Kadant”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Luxfer	$384.60 million	1.21	$7.70 million	$0.30	57.58
Kadant	$1.05 billion	3.08	$101.97 million	$9.30	29.49

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

Analyst Ratings

This is a breakdown of current ratings and target prices for Luxfer and Kadant, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Luxfer	0	2	0	1	2.67
Kadant	0	3	1	0	2.25

Kadant has a consensus price target of $357.50, indicating a potential upside of 30.36%. Given Kadant’s higher possible upside, analysts clearly believe Kadant is more favorable than Luxfer.

Dividends

Luxfer pays an annual dividend of $0.52 per share and has a dividend yield of 3.0%. Kadant pays an annual dividend of $1.44 per share and has a dividend yield of 0.5%. Luxfer pays out 173.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kadant pays out 15.5% of its earnings in the form of a dividend. Kadant has raised its dividend for 12 consecutive years.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Luxfer	2.20%	12.22%	7.23%
Kadant	9.52%	13.16%	7.67%

Institutional & Insider Ownership

90.8% of Luxfer shares are held by institutional investors. Comparatively, 96.1% of Kadant shares are held by institutional investors. 2.0% of Luxfer shares are held by company insiders. Comparatively, 1.3% of Kadant shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Luxfer has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500. Comparatively, Kadant has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500.

Summary

Kadant beats Luxfer on 13 of the 18 factors compared between the two stocks.

About Luxfer

Luxfer Holdings PLC, together with its subsidiaries, designs, manufactures, and supplies high-performance materials, components, and high-pressure gas containment devices for defense and first response, healthcare, transportation, and general industrial applications. The company operates through three segments: Elektron, Gas Cylinders, and graphic Arts. The Elektron segment focuses on specialty materials based primarily on magnesium and zirconium. This segment also provides magnesium alloys for use in aerospace, healthcare, and oil and gas applications; magnesium powders for use in countermeasure flares, as well as heater meals; and zirconium-based materials and oxides used as catalysts and in the manufacture of advanced ceramics, fiber-optic fuel cells, pharmaceuticals, and other performance products. The Gas Cylinders segment manufactures and markets specialized products using carbon composites and aluminum alloys, including pressurized cylinders for use in various applications comprising self-contained breathing apparatus (SCBA) for firefighters, containment of oxygen, and other medical gases for healthcare, alternative fuel vehicles, and general industrial applications. The Graphic Art segments provides magnesium photo-engraving plates, engraving metals, and etching chemicals. This segment also offers magnesium, copper, and zinc photo-engraving plates for graphic arts and luxury packaging; developer solutions; and solid wrought magnesium slab and sheet. Luxfer Holdings PLC has operations in the United States, the United Kingdom, Japan, Germany, Canada, rest of Europe, the Asia Pacific, and internationally. The company was founded in 1898 and is headquartered in Milwaukee, Wisconsin.

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.