Lydall (NYSE: LDL) and Energy Recovery (NASDAQ:ERII) are both small-cap multi-sector conglomerates companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, earnings, risk, profitability, valuation and dividends.
This table compares Lydall and Energy Recovery’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent recommendations and price targets for Lydall and Energy Recovery, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Lydall presently has a consensus target price of $62.50, suggesting a potential upside of 18.26%. Energy Recovery has a consensus target price of $17.14, suggesting a potential upside of 148.81%. Given Energy Recovery’s higher possible upside, analysts plainly believe Energy Recovery is more favorable than Lydall.
Institutional and Insider Ownership
89.1% of Lydall shares are held by institutional investors. Comparatively, 33.7% of Energy Recovery shares are held by institutional investors. 5.0% of Lydall shares are held by insiders. Comparatively, 23.6% of Energy Recovery shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Lydall and Energy Recovery’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Lydall||$640.28 million||1.42||$92.46 million||$2.45||21.57|
|Energy Recovery||$55.87 million||6.61||$3.95 million||$0.03||229.74|
Lydall has higher revenue and earnings than Energy Recovery. Lydall is trading at a lower price-to-earnings ratio than Energy Recovery, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Lydall has a beta of 1.71, suggesting that its share price is 71% more volatile than the S&P 500. Comparatively, Energy Recovery has a beta of 5.54, suggesting that its share price is 454% more volatile than the S&P 500.
Lydall beats Energy Recovery on 7 of the 13 factors compared between the two stocks.
Lydall, Inc. designs and manufactures specialty engineered filtration media, industrial thermal insulating solutions, automotive thermal and acoustical barriers for filtration/separation and thermal/acoustical applications. The Company’s segments are Performance Materials, Technical Nonwovens, Thermal/Acoustical Metals and Thermal/Acoustical Fibers. The Performance Materials segment includes filtration, thermal insulation and life sciences filtration businesses. The Technical Nonwovens segment includes its industrial filtration and advanced materials products. The Thermal/Acoustical Metals segment includes its metal parts and related tooling used in automotive applications. The Thermal/Acoustical Fibers segment includes its fiber parts business and related tooling used in automotive applications. Its Filtration products include LydAir MG (Micro-Glass) Air Filtration Media, LydAir MB (Melt Blown) Air Filtration Media and Arioso Membrane Composite Media.
About Energy Recovery
Energy Recovery, Inc. is an energy solutions provider to industrial fluid flow markets. The Company’s solutions convert wasted pressure energy into a reusable asset and preserve or eliminate pumping technology in hostile processing environments. Its segments include Water, Oil & Gas, and Corporate. The Water Segment focuses on products sold for use in reverse osmosis water desalination. The Oil & Gas Segment consists of products sold for use in hydraulic fracturing, gas processing, and chemical processing. The Company offers energy recovery devices (ERDs) in the water desalination market with its pressure exchanger (PX) and turbocharger technologies. The Company offers VorTeq hydraulic fracturing system, IsoBoost, and IsoGen product lines to the oil and gas market. The Company’s customers include engineering, procurement and construction companies, original equipment manufacturers, international oil companies, national oil companies, and exploration and production companies.
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