Critical Analysis: Key Technology (KTEC) & Albany International Corporation (AIN)
Key Technology (NASDAQ: KTEC) and Albany International Corporation (NYSE:AIN) are both small-cap industrial products companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, profitability, valuation and institutional ownership.
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, Albany International Corporation has a beta of 1.7, indicating that its stock price is 70% more volatile than the S&P 500.
This table compares Key Technology and Albany International Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Albany International Corporation||5.06%||9.41%||3.88%|
This is a breakdown of recent ratings and price targets for Key Technology and Albany International Corporation, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Albany International Corporation||0||1||0||0||2.00|
Albany International Corporation has a consensus target price of $52.00, suggesting a potential downside of 13.84%. Given Albany International Corporation’s higher probable upside, analysts plainly believe Albany International Corporation is more favorable than Key Technology.
Institutional & Insider Ownership
44.6% of Key Technology shares are held by institutional investors. Comparatively, 91.3% of Albany International Corporation shares are held by institutional investors. 29.4% of Key Technology shares are held by company insiders. Comparatively, 11.6% of Albany International Corporation shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Key Technology and Albany International Corporation’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Key Technology||$129.89 million||0.86||$10.16 million||$0.52||33.09|
|Albany International Corporation||$819.17 million||2.36||$159.88 million||$1.33||45.38|
Albany International Corporation has higher revenue and earnings than Key Technology. Key Technology is trading at a lower price-to-earnings ratio than Albany International Corporation, indicating that it is currently the more affordable of the two stocks.
Albany International Corporation pays an annual dividend of $0.68 per share and has a dividend yield of 1.1%. Key Technology does not pay a dividend. Albany International Corporation pays out 51.1% of its earnings in the form of a dividend. Albany International Corporation has raised its dividend for 6 consecutive years.
Albany International Corporation beats Key Technology on 13 of the 15 factors compared between the two stocks.
Key Technology Company Profile
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.
Albany International Corporation Company Profile
Albany International Corp. is focused on textiles and materials processing business. The Company operates through two segments: Machine Clothing and Albany Engineered Composites. The Company’s Machine Clothing segment supplies permeable and impermeable belts used in the manufacture of paper, paperboard, nonwovens, fiber cement and various other industrial applications. The Machine Clothing segment also supplies customized, consumable fabrics used in the manufacturing process in the pulp, corrugator, nonwovens, fiber cement, building products, and tannery and textile industries. Its Albany Engineered Composites segment includes Albany Safran Composites, LLC (ASC), in which its customer SAFRAN Group owns interest and provides engineered composite structures based on its technology to customers in the aerospace and defense industries.
Receive News & Ratings for Key Technology Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Key Technology Inc. and related companies with MarketBeat.com's FREE daily email newsletter.