Albany International Corporation (NYSE: AIN) and Nordson Corporation (NASDAQ:NDSN) are both industrial products companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, profitability, earnings, dividends, analyst recommendations and valuation.

Profitability

This table compares Albany International Corporation and Nordson Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Albany International Corporation 5.06% 9.24% 3.83%
Nordson Corporation 14.57% 32.99% 10.73%

Dividends

Albany International Corporation pays an annual dividend of $0.68 per share and has a dividend yield of 1.1%. Nordson Corporation pays an annual dividend of $1.20 per share and has a dividend yield of 0.9%. Albany International Corporation pays out 51.1% of its earnings in the form of a dividend. Nordson Corporation pays out 23.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Albany International Corporation has increased its dividend for 3 consecutive years and Nordson Corporation has increased its dividend for 6 consecutive years.

Valuation & Earnings

This table compares Albany International Corporation and Nordson Corporation’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Albany International Corporation $819.17 million 2.36 $159.88 million $1.33 45.38
Nordson Corporation $2.00 billion 3.65 $548.73 million $5.02 25.24

Nordson Corporation has higher revenue and earnings than Albany International Corporation. Nordson Corporation 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.

Risk & Volatility

Albany International Corporation has a beta of 1.72, meaning that its share price is 72% more volatile than the S&P 500. Comparatively, Nordson Corporation has a beta of 1.4, meaning that its share price is 40% more volatile than the S&P 500.

Insider & Institutional Ownership

91.3% of Albany International Corporation shares are owned by institutional investors. Comparatively, 65.3% of Nordson Corporation shares are owned by institutional investors. 11.6% of Albany International Corporation shares are owned by company insiders. Comparatively, 2.2% of Nordson Corporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings for Albany International Corporation and Nordson Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Albany International Corporation 0 1 0 0 2.00
Nordson Corporation 0 3 7 0 2.70

Albany International Corporation currently has a consensus price target of $52.00, suggesting a potential downside of 13.84%. Nordson Corporation has a consensus price target of $140.38, suggesting a potential upside of 10.80%. Given Nordson Corporation’s stronger consensus rating and higher possible upside, analysts clearly believe Nordson Corporation is more favorable than Albany International Corporation.

Summary

Nordson Corporation beats Albany International Corporation on 12 of the 17 factors compared between the two stocks.

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.

Nordson Corporation Company Profile

Nordson Corporation engineers, manufactures and markets differentiated products and systems used to dispense, apply and control adhesives, coatings, polymers, sealants, biomaterials, and other fluids, to test and inspect for quality, and to treat and cure surfaces. The Company’s segments include Adhesive Dispensing Systems, Advanced Technology Systems and Industrial Coating Systems. The Adhesive Dispensing Systems segment delivers its precision dispensing and processing technology to various markets. The Advanced Technology Systems segment integrates its product technologies found in progressive stages of a customer’s production process, such as surface treatment, precisely controlled automated, and post-dispense bond testing, optical inspection and X-ray inspection. The Industrial Coating Systems segment provides equipment used primarily for applying coatings, paint, finishes, sealants and other materials, and for curing and drying of dispensed material.

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