Lydall (NYSE: LDL) and Tennant (NYSE:TNC) are both small-cap multi-sector conglomerates companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.

Valuation & Earnings

This table compares Lydall and Tennant’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Lydall $640.28 million 1.24 $92.46 million $2.45 18.88
Tennant $873.73 million 1.23 $91.45 million $1.12 53.97

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

Dividends

Tennant pays an annual dividend of $0.84 per share and has a dividend yield of 1.4%. Lydall does not pay a dividend. Tennant pays out 75.0% of its earnings in the form of a dividend. Lydall has raised its dividend for 45 consecutive years.

Volatility & Risk

Lydall has a beta of 1.71, indicating that its share price is 71% more volatile than the S&P 500. Comparatively, Tennant has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500.

Insider & Institutional Ownership

89.1% of Lydall shares are owned by institutional investors. Comparatively, 89.4% of Tennant shares are owned by institutional investors. 5.0% of Lydall shares are owned by company insiders. Comparatively, 5.7% of Tennant shares are owned by company 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 Tennant’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%
Tennant 2.32% 15.39% 7.19%

Analyst Ratings

This is a breakdown of current ratings and target prices for Lydall and Tennant, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lydall 0 0 1 0 3.00
Tennant 0 2 0 0 2.00

Lydall currently has a consensus price target of $63.00, suggesting a potential upside of 36.22%. Tennant has a consensus price target of $65.00, suggesting a potential upside of 7.53%. Given Lydall’s stronger consensus rating and higher possible upside, equities analysts plainly believe Lydall is more favorable than Tennant.

Summary

Lydall beats Tennant on 12 of the 17 factors compared between the two stocks.

Lydall Company Profile

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.

Tennant Company Profile

Tennant Company is engaged in designing, manufacturing and marketing of cleaning solutions. The Company’s segments are Americas; Europe, Middle East, Africa, and Asia Pacific. The Company offers a range of products, including floor maintenance and outdoor cleaning equipment, detergent-free and other sustainable cleaning technologies, aftermarket parts and consumables, equipment maintenance and repair service, specialty surface coatings and asset management solutions. Its products are used in various types of environments, including retail establishments, distribution centers, factories and warehouses, public venues such as arenas and stadiums, office buildings, schools and universities, hospitals and clinics, parking lots and streets. The Company markets and sells its products under various brands: Tennant, Nobles, Green Machines, Alfa Uma Empresa Tennant, IRIS, Orbio IPC, IPC Foma, IPC Eagle, IPC Gansow, ICA, Vaclensa, Portotecnica, Sirio and Soteco, Ready System, Euromop, and Pulex.

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