Head-To-Head Analysis: Welbilt (WBT) vs. Kaman (KAMN)
Welbilt (NYSE: WBT) and Kaman (NYSE:KAMN) are both industrial products companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, risk and dividends.
Insider and Institutional Ownership
91.3% of Welbilt shares are owned by institutional investors. Comparatively, 92.2% of Kaman shares are owned by institutional investors. 0.7% of Welbilt shares are owned by insiders. Comparatively, 2.4% of Kaman shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Welbilt has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500. Comparatively, Kaman has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500.
This table compares Welbilt and Kaman’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Kaman pays an annual dividend of $0.80 per share and has a dividend yield of 1.3%. Welbilt does not pay a dividend. Kaman pays out 44.2% of its earnings in the form of a dividend. Welbilt has increased its dividend for 3 consecutive years.
This is a breakdown of recent ratings and recommmendations for Welbilt and Kaman, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Welbilt currently has a consensus target price of $24.00, indicating a potential upside of 15.66%. Kaman has a consensus target price of $60.00, indicating a potential downside of 0.60%. Given Welbilt’s stronger consensus rating and higher probable upside, analysts plainly believe Welbilt is more favorable than Kaman.
Earnings and Valuation
This table compares Welbilt and Kaman’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Welbilt||$1.46 billion||1.99||$79.50 million||$0.64||32.42|
|Kaman||$1.81 billion||0.93||$58.85 million||$1.81||33.35|
Welbilt has higher earnings, but lower revenue than Kaman. Welbilt is trading at a lower price-to-earnings ratio than Kaman, indicating that it is currently the more affordable of the two stocks.
Welbilt beats Kaman on 10 of the 17 factors compared between the two stocks.
Welbilt, Inc., formerly Manitowoc Foodservice, Inc., is a commercial foodservice equipment company. The Company designs, manufactures and supplies food and beverage equipment for the global commercial foodservice market, offering customers operator and patron insights, kitchen solutions, culinary expertise, and implementation support and service. It operates through three segments: Americas, EMEA and APAC. The Americas segment includes the United States, Canada and Latin America. The EMEA segment consists of markets in Europe, Middle East and Africa, including Russia and the commonwealth of independent states. The APAC segment consists of markets in China, Singapore, Australia, India, Malaysia, Indonesia, Thailand and the Philippines. It supplies foodservice equipment to commercial and institutional foodservice operators. Its brands include Cleveland, Convotherm, Delfield, fitKitchen, Frymaster, Garland, Kolpak, Lincoln, Manitowoc Ice, Merco, Merrychef and Multiplex.
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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