Key Technology (NASDAQ: KTEC) is one of 18 public companies in the “Industrial Machinery” industry, but how does it contrast to its rivals? We will compare Key Technology to related businesses based on the strength of its analyst recommendations, profitability, valuation, earnings, dividends, risk and institutional ownership.

Analyst Recommendations

This is a summary of recent ratings and target prices for Key Technology and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Key Technology 0 0 0 0 N/A
Key Technology Competitors 44 291 291 8 2.41

As a group, “Industrial Machinery” companies have a potential upside of 7.10%. Given Key Technology’s rivals higher probable upside, analysts clearly believe Key Technology has less favorable growth aspects than its rivals.

Profitability

This table compares Key Technology and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Key Technology 2.58% 5.27% 3.31%
Key Technology Competitors -24.03% 10.43% 4.25%

Institutional and Insider Ownership

44.6% of Key Technology shares are owned by institutional investors. Comparatively, 63.5% of shares of all “Industrial Machinery” companies are owned by institutional investors. 29.4% of Key Technology shares are owned by company insiders. Comparatively, 12.0% of shares of all “Industrial Machinery” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Key Technology and its rivals gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Key Technology $129.89 million $10.16 million 34.46
Key Technology Competitors $696.10 million $107.92 million 49.94

Key Technology’s rivals have higher revenue and earnings than Key Technology. Key Technology is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

Key Technology has a beta of 1.1, indicating that its stock price is 10% more volatile than the S&P 500. Comparatively, Key Technology’s rivals have a beta of 1.52, indicating that their average stock price is 52% more volatile than the S&P 500.

Summary

Key Technology rivals beat Key Technology on 8 of the 10 factors compared.

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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