Comparing Actuant (ATU) & KLX (KLXI)

Actuant (NYSE: ATU) and KLX (NASDAQ:KLXI) are both industrial products companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, dividends, risk, profitability, analyst recommendations, earnings and institutional ownership.

Dividends

Actuant pays an annual dividend of $0.04 per share and has a dividend yield of 0.2%. KLX does not pay a dividend. Actuant pays out -3.6% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of recent recommendations for Actuant and KLX, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Actuant 1 7 3 0 2.18
KLX 0 3 2 0 2.40

Actuant presently has a consensus target price of $24.38, suggesting a potential upside of 4.84%. KLX has a consensus target price of $65.00, suggesting a potential downside of 1.35%. Given Actuant’s higher probable upside, equities analysts clearly believe Actuant is more favorable than KLX.

Valuation & Earnings

This table compares Actuant and KLX’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Actuant $1.10 billion 1.27 -$66.21 million ($1.11) -20.95
KLX $1.53 billion 2.17 $48.20 million $1.63 40.42

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

Volatility and Risk

Actuant has a beta of 1.56, meaning that its stock price is 56% more volatile than the S&P 500. Comparatively, KLX has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500.

Profitability

This table compares Actuant and KLX’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Actuant -5.89% 9.29% 3.32%
KLX 4.99% 5.14% 3.08%

Actuant Company Profile

Actuant Corporation designs, manufactures and distributes a range of industrial products and systems to various end markets. The Company operates through three segments: Industrial, Energy and Engineered Solutions. The Company’s Industrial segment is primarily involved in the design, manufacture and distribution of branded hydraulic and mechanical tools to the maintenance, industrial, infrastructure and production automation markets. The Company’s Energy segment provides joint integrity products and services, customized offshore vessel mooring solutions, as well as rope and cable solutions to the global oil and gas, power generation and other energy markets. The Company’s Engineered Solutions segment provides engineered position and motion control systems to original equipment manufacturers (OEM) in various on and off-highway vehicle markets, as well as various other products to the industrial and agricultural markets.

KLX Company Profile

KLX Inc. (KLX) is the distributor and service provider of aerospace fasteners and consumables. The Company offers ranges of aerospace hardware and consumables and inventory management services across the world. The Company operates through two segments: Aerospace Solutions Group (ASG) and Energy Services Group (ESG). The Company’s ASG segment service offerings include inventory management and replenishment, creative and differential supply chain solutions, such as third-party logistics programs, special packaging and bar-coding, parts kitting, quality assurance testing and a range of purchasing assistance programs, plus the electronic data interchange capability. The Company’s ESG segment products and services include onshore completion services, wireline services, fishing services and tools, down-hole completion and production services, pressure control, accommodations and related surface rental equipment, and remanufacturing shops.

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