Albany International (NYSE: AIN) and Tennant (NYSE:TNC) are both industrial products companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, valuation, institutional ownership, profitability, earnings and dividends.
Institutional & Insider Ownership
89.9% of Albany International shares are held by institutional investors. Comparatively, 91.1% of Tennant shares are held by institutional investors. 11.6% of Albany International shares are held by company insiders. Comparatively, 5.7% of Tennant shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Risk & Volatility
Albany International has a beta of 1.58, indicating that its stock price is 58% more volatile than the S&P 500. Comparatively, Tennant has a beta of 0.92, indicating that its stock price is 8% less volatile than the S&P 500.
Albany International pays an annual dividend of $0.68 per share and has a dividend yield of 1.0%. Tennant pays an annual dividend of $0.84 per share and has a dividend yield of 1.2%. Albany International pays out 70.8% of its earnings in the form of a dividend. Tennant pays out -240.0% 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. Tennant has increased its dividend for 46 consecutive years. Tennant is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a breakdown of current ratings and recommmendations for Albany International and Tennant, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Albany International currently has a consensus target price of $64.00, indicating a potential downside of 4.33%. Tennant has a consensus target price of $65.00, indicating a potential downside of 7.34%. Given Albany International’s higher probable upside, equities research analysts plainly believe Albany International is more favorable than Tennant.
Valuation and Earnings
This table compares Albany International and Tennant’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Albany International||$863.72 million||2.49||$33.11 million||$0.96||69.69|
|Tennant||$1.00 billion||1.25||-$6.19 million||($0.35)||-200.42|
Albany International has higher earnings, but lower revenue than Tennant. Tennant is trading at a lower price-to-earnings ratio than Albany International, indicating that it is currently the more affordable of the two stocks.
This table compares Albany International and Tennant’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Albany International beats Tennant on 9 of the 17 factors compared between the two stocks.
Albany International Company Profile
Albany International Corp. is focused on textiles and materials processing business. The Company operates through two segments: Machine Clothing and Albany Engineered Composites. The Company’s Machine Clothing segment supplies permeable and impermeable belts used in the manufacture of paper, paperboard, nonwovens, fiber cement and various other industrial applications. The Machine Clothing segment also supplies customized, consumable fabrics used in the manufacturing process in the pulp, corrugator, nonwovens, fiber cement, building products, and tannery and textile industries. Its Albany Engineered Composites segment includes Albany Safran Composites, LLC (ASC), in which its customer SAFRAN Group owns interest and provides engineered composite structures based on its technology to customers in the aerospace and defense industries.
Tennant Company Profile
Tennant Company is engaged in designing, manufacturing and marketing of cleaning solutions. The Company’s segments are Americas; Europe, Middle East, Africa, and Asia Pacific. The Company offers a range of products, including floor maintenance and outdoor cleaning equipment, detergent-free and other sustainable cleaning technologies, aftermarket parts and consumables, equipment maintenance and repair service, specialty surface coatings and asset management solutions. Its products are used in various types of environments, including retail establishments, distribution centers, factories and warehouses, public venues such as arenas and stadiums, office buildings, schools and universities, hospitals and clinics, parking lots and streets. The Company markets and sells its products under various brands: Tennant, Nobles, Green Machines, Alfa Uma Empresa Tennant, IRIS, Orbio IPC, IPC Foma, IPC Eagle, IPC Gansow, ICA, Vaclensa, Portotecnica, Sirio and Soteco, Ready System, Euromop, and Pulex.
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