Tennant (NYSE:TNC – Get Free Report) and Keyence (OTCMKTS:KYCCF – Get Free Report) are both industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, dividends, institutional ownership, earnings, valuation and analyst recommendations.
Insider & Institutional Ownership
93.3% of Tennant shares are held by institutional investors. 2.6% of Tennant shares are held by 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.
Profitability
This table compares Tennant and Keyence’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Tennant | 4.42% | 16.55% | 8.65% |
| Keyence | N/A | N/A | N/A |
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Tennant | $1.29 billion | 1.09 | $83.70 million | $2.92 | 26.41 |
| Keyence | $7.06 billion | N/A | $2.66 billion | N/A | N/A |
Keyence has higher revenue and earnings than Tennant.
Analyst Ratings
This is a breakdown of current ratings for Tennant and Keyence, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Tennant | 0 | 2 | 2 | 0 | 2.50 |
| Keyence | 0 | 1 | 0 | 0 | 2.00 |
Tennant currently has a consensus target price of $113.50, indicating a potential upside of 47.21%. Given Tennant’s stronger consensus rating and higher probable upside, equities analysts plainly believe Tennant is more favorable than Keyence.
Risk and Volatility
Tennant has a beta of 1.06, indicating that its share price is 6% more volatile than the S&P 500. Comparatively, Keyence has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500.
Summary
Tennant beats Keyence on 8 of the 11 factors compared between the two stocks.
About Tennant
Tennant Company, together with its subsidiaries, designs, manufactures, and markets floor cleaning equipment in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company offers a suite of products, including floor maintenance and cleaning equipment, detergent-free and other sustainable cleaning technologies, aftermarket parts and consumables, equipment maintenance and repair services, and asset management solutions. It provides business solutions, such as financing, rental, and leasing programs, as well as machine-to-machine asset management solutions. The company offers its products under the Tennant, Nobles, Alfa Uma Empresa Tennant, IPC, Gaomei, and Rongen brands, as well as private-label brands. Its products are used in retail establishments and distribution centers; factories and warehouses; and public venues, such as arenas and stadiums, office buildings, schools and universities, hospitals and clinics, and other environments. The company markets its products to contract cleaners and businesses through direct sales and service organizations, as well as through a network of authorized distributors. Tennant Company was founded in 1870 and is headquartered in Eden Prairie, Minnesota.
About Keyence
Keyence Corporation, together with its subsidiaries, engages in the development, manufacture, and sale of factory automation solutions in Japan, China, the United States, and internationally. The company offers photoelectric, fiber optic, laser, positioning, vision, specific solution, and inductive proximity sensors, as well as network communication units. It also provides measurement sensors, such as laser displacement and profiler, optical/laser micrometer, inductive displacement sensor, 3D interference measurement, spectral interference displacement, and contact displacement/LVDT sensors; and measurement systems, including optical comparators, 3D scanners, multisensor measurement, and CMM/laser trackers. In addition, the company provides safety products comprising safety laser scanners, light curtains, interlock switches, and controllers; and pressure, flow, level, and temperature sensors for monitoring equipment processes. Further, it offers static eliminators/ionizers and electrostatic sensors, which protect workers, machinery, and products from the damaging effects of electrostatic charge; vision systems and sensors; and programmable logic controllers, servo motor and system, and other controls that are used for machine control applications. Additionally, the company provides barcode and handheld scanners; laser marking systems/laser markers, UV laser coder, and industrial continuous inkjet printers; digital, 3D surface profilers, elemental analyzers, optical profilometers, and fluorescence microscopes; data loggers; and mobile/ handheld computers. It serves customers in automotive, semiconductors/LCDs, electronic devices, food/pharmaceutical, medical technology, logistics, metals, plastics, and films/sheets industries. Keyence Corporation was founded in 1972 and is headquartered in Osaka, Japan.
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