Dover (NYSE: DOV) and Kaman (NYSE:KAMN) are both industrial products companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, risk, earnings, profitability, valuation, dividends and institutional ownership.
Risk and Volatility
Dover has a beta of 1.29, suggesting that its stock price is 29% more volatile than the S&P 500. Comparatively, Kaman has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500.
Valuation and Earnings
This table compares Dover and Kaman’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Dover||$6.79 billion||2.22||$508.89 million||$4.30||22.49|
|Kaman||$1.81 billion||0.90||$58.85 million||$1.81||32.38|
Dover has higher revenue and earnings than Kaman. Dover is trading at a lower price-to-earnings ratio than Kaman, indicating that it is currently the more affordable of the two stocks.
Dover pays an annual dividend of $1.88 per share and has a dividend yield of 1.9%. Kaman pays an annual dividend of $0.80 per share and has a dividend yield of 1.4%. Dover pays out 43.7% of its earnings in the form of a dividend. Kaman pays out 44.2% 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. Dover has increased its dividend for 2 consecutive years and Kaman has increased its dividend for 61 consecutive years. Dover is clearly the better dividend stock, given its higher yield and lower payout ratio.
Insider & Institutional Ownership
84.6% of Dover shares are owned by institutional investors. Comparatively, 92.6% of Kaman shares are owned by institutional investors. 2.5% of Dover shares are owned by insiders. Comparatively, 2.4% of Kaman shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This table compares Dover and Kaman’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current ratings and target prices for Dover and Kaman, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Dover presently has a consensus price target of $94.09, indicating a potential downside of 2.71%. Kaman has a consensus price target of $56.67, indicating a potential downside of 3.32%. Given Dover’s stronger consensus rating and higher probable upside, equities analysts plainly believe Dover is more favorable than Kaman.
Dover beats Kaman on 14 of the 17 factors compared between the two stocks.
Dover Company Profile
Dover Corporation is a diversified global manufacturer delivering equipment and components, specialty systems, consumable supplies, software and digital solutions and support services. The Company’s segments include Energy, Engineered Systems, Fluids and Refrigeration & Food Equipment. The Company’s Energy segment is a provider of solutions and services for production and processing of fuels around the world. Its Engineered Systems segment includes two platforms: Printing & Identification, and Industrials and is focused on the design, manufacture and service of critical equipment and components serving the fast-moving consumer goods, digital textile printing and industrial end markets. Its Fluids segment is focused on the safe handling of critical fluids across the retail fueling, chemical, and industrial end markets. The Refrigeration & Food Equipment segment is a provider of energy efficient equipment and systems serving the commercial refrigeration and food equipment end markets.
Kaman 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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