Financial Contrast: Applied Industrial Technologies (AIT) vs. Hudson Technologies (HDSN)

Applied Industrial Technologies (NYSE: AIT) and Hudson Technologies (NASDAQ:HDSN) are both industrial products companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, earnings, dividends, institutional ownership, risk and profitability.

Risk and Volatility

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Applied Industrial Technologies has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500. Comparatively, Hudson Technologies has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Applied Industrial Technologies and Hudson Technologies, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Applied Industrial Technologies 0 3 0 0 2.00
Hudson Technologies 0 1 2 0 2.67

Applied Industrial Technologies presently has a consensus target price of $63.00, indicating a potential downside of 11.64%. Hudson Technologies has a consensus target price of $7.75, indicating a potential upside of 75.34%. Given Hudson Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe Hudson Technologies is more favorable than Applied Industrial Technologies.

Earnings and Valuation

This table compares Applied Industrial Technologies and Hudson Technologies’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Applied Industrial Technologies $2.59 billion 1.06 $133.91 million $2.84 25.11
Hudson Technologies $140.38 million 1.34 $11.15 million $0.47 9.40

Applied Industrial Technologies has higher revenue and earnings than Hudson Technologies. Hudson Technologies is trading at a lower price-to-earnings ratio than Applied Industrial Technologies, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Applied Industrial Technologies and Hudson Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Applied Industrial Technologies 5.43% 16.53% 8.99%
Hudson Technologies 7.95% 11.97% 7.83%

Dividends

Applied Industrial Technologies pays an annual dividend of $1.20 per share and has a dividend yield of 1.7%. Hudson Technologies does not pay a dividend. Applied Industrial Technologies pays out 42.3% of its earnings in the form of a dividend. Applied Industrial Technologies has raised its dividend for 8 consecutive years.

Institutional & Insider Ownership

89.8% of Applied Industrial Technologies shares are owned by institutional investors. Comparatively, 76.1% of Hudson Technologies shares are owned by institutional investors. 3.7% of Applied Industrial Technologies shares are owned by insiders. Comparatively, 18.0% of Hudson Technologies shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Applied Industrial Technologies beats Hudson Technologies on 9 of the 17 factors compared between the two stocks.

About Applied Industrial Technologies

Applied Industrial Technologies, Inc. is an industrial distributor in North America, Australia and New Zealand, serving maintenance, repair and operations (MRO), and original equipment manufacturing customers in various industries. In addition, the Company provides engineering, design, and systems integration for industrial and fluid power applications, as well as customized mechanical, fabricated rubber, and fluid power shop services. It operates in two segments: service center-based distribution and fluid power businesses. The service center-based distribution segment provides customers with a range of industrial products primarily through a network of service centers. The fluid power businesses segment consists of specialized regional companies that distribute fluid power components, design and assemble fluid power systems, and perform equipment repair. The fluid power businesses primarily sell products and services directly to customers rather than through the service centers.

About Hudson Technologies

Hudson Technologies, Inc. is a refrigerant services company. The Company’s products and services are primarily used in commercial air conditioning, industrial processing and refrigeration systems, and include refrigerant and industrial gas sales, refrigerant management services consisting primarily of reclamation of refrigerants and RefrigerantSide Services performed at a customer’s site, consisting of system decontamination to remove moisture, oils and other contaminants. In addition, the Company’s SmartEnergy OPS service is a Web-based real time continuous monitoring service applicable to a facility’s refrigeration systems and other energy systems. The Company’s Chiller Chemistry and Chill Smart services are also predictive and diagnostic service offerings. The Company sells reclaimed and virgin (new) refrigerants to a variety of customers in various segments of the air conditioning and refrigeration industry, and sells industrial gases to a variety of industry segments.

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