Critical Contrast: Kaman Corporation (KAMN) versus Rexnord Corporation (RXN)
Kaman Corporation (NYSE: KAMN) and Rexnord Corporation (NYSE:RXN) are both industrial products companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, institutional ownership, valuation and risk.
Institutional and Insider Ownership
94.0% of Kaman Corporation shares are owned by institutional investors. 2.4% of Kaman Corporation shares are owned by company insiders. Comparatively, 3.5% of Rexnord Corporation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This is a breakdown of current ratings for Kaman Corporation and Rexnord Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Kaman Corporation presently has a consensus target price of $56.67, indicating a potential upside of 0.35%. Rexnord Corporation has a consensus target price of $26.00, indicating a potential upside of 1.33%. Given Rexnord Corporation’s stronger consensus rating and higher probable upside, analysts plainly believe Rexnord Corporation is more favorable than Kaman Corporation.
Valuation and Earnings
This table compares Kaman Corporation and Rexnord Corporation’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Kaman Corporation||$1.77 billion||0.89||$161.23 million||$1.81||31.20|
|Rexnord Corporation||$1.93 billion||1.38||$327.90 million||$0.67||38.30|
Rexnord Corporation has higher revenue and earnings than Kaman Corporation. Kaman Corporation is trading at a lower price-to-earnings ratio than Rexnord Corporation, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Kaman Corporation has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500. Comparatively, Rexnord Corporation has a beta of 1.63, meaning that its stock price is 63% more volatile than the S&P 500.
This table compares Kaman Corporation and Rexnord Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Kaman Corporation pays an annual dividend of $0.80 per share and has a dividend yield of 1.4%. Rexnord Corporation does not pay a dividend. Kaman Corporation pays out 44.2% of its earnings in the form of a dividend. Kaman Corporation has increased its dividend for 2 consecutive years.
Rexnord Corporation beats Kaman Corporation on 12 of the 17 factors compared between the two stocks.
Kaman Corporation Company Profile
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.
Rexnord Corporation Company Profile
Rexnord Corporation is a multi-platform industrial company. The Company operates through two segments: Process & Motion Control platform, and Water Management platform. The Process & Motion Control platform designs, manufactures, markets and services a range of engineered mechanical components used within systems. The Process & Motion Control portfolio includes motion control products, shaft management products, aerospace components and related value-added services. Its Process & Motion Control brands include Rexnord, Rex, Euroflex, Falk, FlatTop, Link-Belt, Thomas and Tollok. The Water Management platform designs, procures and markets products that provide and enhance water quality, safety, flow control and conservation. The Water Management product portfolio includes professional grade water control and safety, water distribution and drainage, finish plumbing and site works products. Its products are marketed and sold under various brand names, including Zurn, Wilkins and VAG.
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