Key Technology (NASDAQ: KTEC) and Nordson Corporation (NASDAQ:NDSN) are both industrial products companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, valuation, dividends, risk, analyst recommendations and earnings.
Volatility & Risk
Key Technology has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500. Comparatively, Nordson Corporation has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500.
Nordson Corporation pays an annual dividend of $1.20 per share and has a dividend yield of 1.1%. Key Technology does not pay a dividend. Nordson Corporation pays out 23.9% of its earnings in the form of a dividend. Key Technology has raised its dividend for 3 consecutive years.
Valuation & Earnings
This table compares Key Technology and Nordson Corporation’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Key Technology||$129.89 million||0.78||$10.16 million||$0.52||30.00|
|Nordson Corporation||$2.00 billion||3.27||$534.78 million||$5.02||22.55|
Nordson Corporation has higher revenue and earnings than Key Technology. Nordson Corporation is trading at a lower price-to-earnings ratio than Key Technology, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and recommmendations for Key Technology and Nordson Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Nordson Corporation has a consensus target price of $138.00, suggesting a potential upside of 21.91%. Given Nordson Corporation’s higher possible upside, analysts clearly believe Nordson Corporation is more favorable than Key Technology.
Institutional & Insider Ownership
44.6% of Key Technology shares are held by institutional investors. Comparatively, 66.0% of Nordson Corporation shares are held by institutional investors. 29.4% of Key Technology shares are held by insiders. Comparatively, 2.2% of Nordson Corporation shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
This table compares Key Technology and Nordson Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Nordson Corporation beats Key Technology on 12 of the 16 factors compared between the two stocks.
Key Technology Company Profile
Key Technology, Inc. is a supplier of process automation solutions to the food processing industry and other industries, such as tobacco and pharmaceuticals. The Company designs, manufactures, sells and services automation equipment that processes product streams of discrete pieces. These systems integrate electro-optical automated inspection and digital sorting systems with other processing systems that include specialized conveying and preparation equipment. The Company provides parts and service for each of its product lines to customers around the world. Its automated inspection systems are used in various applications to detect and remove defects and foreign material from the product stream. It offers conveying and processing equipment, which are utilized throughout various industries to move and process product within a production plant. Its Integrated Solutions Group (ISG) provides integrated whole-line solutions. It has an installed base of inspection and processing systems.
Nordson Corporation Company Profile
Nordson Corporation engineers, manufactures and markets differentiated products and systems used to dispense, apply and control adhesives, coatings, polymers, sealants, biomaterials, and other fluids, to test and inspect for quality, and to treat and cure surfaces. The Company’s segments include Adhesive Dispensing Systems, Advanced Technology Systems and Industrial Coating Systems. The Adhesive Dispensing Systems segment delivers its precision dispensing and processing technology to various markets. The Advanced Technology Systems segment integrates its product technologies found in progressive stages of a customer’s production process, such as surface treatment, precisely controlled automated, and post-dispense bond testing, optical inspection and X-ray inspection. The Industrial Coating Systems segment provides equipment used primarily for applying coatings, paint, finishes, sealants and other materials, and for curing and drying of dispensed material.
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