Contrasting Chart Industries (NYSE:GTLS) and Kadant (NYSE:KAI)

Chart Industries (NYSE:GTLS) and Kadant (NYSE:KAI) are both mid-cap industrials companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, dividends, profitability, valuation and earnings.

Profitability

This table compares Chart Industries and Kadant’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chart Industries	1.55%	14.17%	4.87%
Kadant	9.96%	11.97%	7.41%

Insider and Institutional Ownership

96.1% of Kadant shares are held by institutional investors. 1.0% of Chart Industries shares are held by insiders. Comparatively, 1.4% of Kadant shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Chart Industries and Kadant”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chart Industries	$4.16 billion	2.23	$218.50 million	$0.82	252.27
Kadant	$1.05 billion	3.73	$111.60 million	$8.65	38.58

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for Chart Industries and Kadant, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chart Industries	1	12	3	0	2.13
Kadant	0	2	1	0	2.33

Chart Industries currently has a consensus target price of $204.10, suggesting a potential downside of 1.33%. Kadant has a consensus target price of $337.50, suggesting a potential upside of 1.13%. Given Kadant’s stronger consensus rating and higher probable upside, analysts plainly believe Kadant is more favorable than Chart Industries.

Volatility and Risk

Chart Industries has a beta of 1.75, indicating that its stock price is 75% more volatile than the S&P 500. Comparatively, Kadant has a beta of 1.25, indicating that its stock price is 25% more volatile than the S&P 500.

Summary

Kadant beats Chart Industries on 8 of the 14 factors compared between the two stocks.

About Chart Industries

Chart Industries, Inc. engages in the designing, engineering, and manufacturing of process technologies and equipment for the gas and liquid molecules in the United States and internationally. The company operates in four segments: Cryo Tank Solutions, Heat Transfer Systems, Specialty Products, and Repair, Service & Leasing. It provides bulk and packaged gas cryogenic solutions for the storage, distribution, vaporization, and application of industrial gases; cryogenic trailers, ISO containers, bulk storage tanks, loading facilities, and regasification equipment for delivering liquefied natural gas (LNG) into virtual pipeline applications; and large vacuum insulated storage tanks as equipment for purchasers of standard liquefaction plants. The company also offers natural gas processing solutions; process technology, liquefaction capabilities, and critical equipment for the LNG, include small to mid-scale facilities, floating LNG applications, and large base-load export facilities; brazed aluminum heat exchangers, Core-in-Kettle heat exchangers, cold boxes, air cooled heat exchangers, pressure vessels, and pipe works; and air cooled heat exchangers and axial cooling fans for the HVAC, power, and refining applications. Further, it provides extended warranties, plant start-up, parts, 24/7 support, monitoring and process optimization, repairing, maintenance, and upgrading services; plant services on equipment; and service locations that undertake installation, service, repair, maintenance, and refurbishment of cryogenic products, as well as equipment leasing solutions. Chart Industries, Inc. was founded in 1859 and is headquartered in Ball Ground, Georgia.

About Kadant

Kadant Inc. supplies technologies and engineered systems worldwide. It operates in three segments: Flow Control, Industrial Processing, and Material Handling. The Flow Control segment develops, manufactures, and markets fluid-handling systems and equipment, such as rotary joints, syphons, turbulator bars, expansion joints, and engineered steam and condensate systems; and doctoring, cleaning, and filtration systems and related consumables consisting of doctor systems and holders, doctor blades, cleaning shower and fabric-conditioning systems, forming systems and wear surfaces, and water-filtration systems. The Industrial Processing segment develops, manufactures, and markets ring and rotary debarkers, stranders, chippers, engineered knife systems, industrial automation and control, recycling and approach flow systems, and virgin pulping process equipment for use in the packaging, tissue, wood products, and alternative fuel industries. The Material Handling segment offers conveying and vibratory equipment, and baling products; and manufactures and sells biodegradable absorbent granules for carriers in agricultural, home lawn and garden, professional lawn, turf, and ornamental applications, as well as for oil and grease absorption. The company markets and sells its products, services, and systems through direct sales, independent sales agents, and distributors. The company was formerly known as Thermo Fibertek, Inc. and changed its name to Kadant Inc. in July 2001. Kadant Inc. was incorporated in 1991 and is headquartered in Westford, Massachusetts.