Critical Contrast: Kaman Corporation (KAMN) & Its Peers

Kaman Corporation (NYSE: KAMN) is one of 58 publicly-traded companies in the “Industrial Machinery & Equipment” industry, but how does it contrast to its rivals? We will compare Kaman Corporation to related companies based on the strength of its profitability, institutional ownership, analyst recommendations, dividends, risk, earnings and valuation.

Institutional and Insider Ownership

93.7% of Kaman Corporation shares are held by institutional investors. Comparatively, 79.1% of shares of all “Industrial Machinery & Equipment” companies are held by institutional investors. 2.4% of Kaman Corporation shares are held by company insiders. Comparatively, 5.4% of shares of all “Industrial Machinery & Equipment” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Kaman Corporation and its rivals revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Kaman Corporation $1.77 billion $161.23 million 28.01
Kaman Corporation Competitors $2.17 billion $344.42 million 24.35

Kaman Corporation’s rivals have higher revenue and earnings than Kaman Corporation. Kaman Corporation is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Kaman Corporation and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kaman Corporation 0 4 1 0 2.20
Kaman Corporation Competitors 392 1902 1919 36 2.38

Kaman Corporation currently has a consensus target price of $56.67, indicating a potential upside of 9.37%. As a group, “Industrial Machinery & Equipment” companies have a potential upside of 6.07%. Given Kaman Corporation’s higher probable upside, analysts clearly believe Kaman Corporation is more favorable than its rivals.

Risk and Volatility

Kaman Corporation has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500. Comparatively, Kaman Corporation’s rivals have a beta of 1.21, indicating that their average stock price is 21% more volatile than the S&P 500.

Dividends

Kaman Corporation pays an annual dividend of $0.80 per share and has a dividend yield of 1.5%. Kaman Corporation pays out 43.2% of its earnings in the form of a dividend. As a group, “Industrial Machinery & Equipment” companies pay a dividend yield of 1.6% and pay out 35.6% of their earnings in the form of a dividend. Kaman Corporation has increased its dividend for 2 consecutive years. Kaman Corporation lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares Kaman Corporation and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kaman Corporation 2.95% 9.24% 3.73%
Kaman Corporation Competitors 1.74% 7.18% 4.80%

Summary

Kaman Corporation rivals beat Kaman Corporation on 10 of the 15 factors compared.

Kaman Corporation Company Profile

Kaman Corporation conducts business in the aerospace and distribution markets. The Company operates through two segments: Distribution and Aerospace. The Company’s brands include KAflex, KAron and K-MAX. Distribution segment is a power transmission, motion control, and fluid power industrial distributor with operations throughout the United States. Distribution segment conducts business in the mechanical power transmission and bearings, electrical, automation and control, and fluid power product platforms and provides total solutions from system design and integration to machine parts and services to the national manufacturing industry. Aerospace segment produces and markets aircraft bearings and components; super precision, miniature ball bearings; metallic and composite aerostructures for commercial, military and general aviation fixed and rotary wing aircraft, and safe and arming solutions for missile and bomb systems for the United States and allied militaries.

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