Lydall (LDL) and Strattec Security (STRT) Head-To-Head Analysis

Lydall (NYSE: LDL) and Strattec Security (NASDAQ:STRT) are both small-cap multi-sector conglomerates companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, dividends, earnings, valuation, institutional ownership and risk.

Risk and Volatility

Lydall has a beta of 1.44, suggesting that its share price is 44% more volatile than the S&P 500. Comparatively, Strattec Security has a beta of 1.5, suggesting that its share price is 50% more volatile than the S&P 500.

Dividends

Strattec Security pays an annual dividend of $0.56 per share and has a dividend yield of 1.6%. Lydall does not pay a dividend.

Institutional and Insider Ownership

90.7% of Lydall shares are owned by institutional investors. Comparatively, 81.2% of Strattec Security shares are owned by institutional investors. 4.4% of Lydall shares are owned by company insiders. Comparatively, 7.1% of Strattec Security shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Lydall and Strattec Security’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lydall 7.01% 14.99% 8.68%
Strattec Security 2.50% 6.48% 4.02%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Lydall and Strattec Security, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lydall 0 0 2 0 3.00
Strattec Security 0 0 0 0 N/A

Lydall currently has a consensus price target of $59.00, indicating a potential upside of 24.60%. Given Lydall’s higher possible upside, equities analysts plainly believe Lydall is more favorable than Strattec Security.

Valuation and Earnings

This table compares Lydall and Strattec Security’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Lydall $698.44 million 1.18 $49.31 million $2.80 16.91
Strattec Security $417.33 million 0.31 $7.19 million N/A N/A

Lydall has higher revenue and earnings than Strattec Security.

Summary

Lydall beats Strattec Security on 10 of the 13 factors compared between the two stocks.

Lydall Company Profile

Lydall, Inc. designs, manufactures, and markets specialty engineered filtration media, industrial thermal insulating solutions, and automotive thermal and acoustical barriers for filtration/separation and thermal/acoustical applications worldwide. It operates through Performance Materials, Technical Nonwovens, and Thermal Acoustical Solutions segments. The Performance Materials segment offers filtration media solutions for air, fluid power, and industrial applications, such as clean-space, commercial, HVAC, power generation, and industrial processes. This segment also provides non-woven veils, papers, mats, and specialty composites for the building products, appliances, and energy and industrial markets; and life sciences filtration products for biopharmaceutical pre-filtration and clarification, diagnostic and analytical testing, respiratory protection, water filtration, and high purity process filtration. The Technical Nonwovens segment offers nonwoven rolled-good felt media and filter bags used primarily in industrial air and liquid filtration applications. The Thermal Acoustical Solutions segment provides engineered products for the transportation sector to thermally shield sensitive components from high heat, improve exhaust gas treatment, and lower harmful emissions, as well as assist in the reduction of powertrain and road noise. Its products are used in the tunnel, fuel tank, rear muffler, and spare tire applications, as well as outer dash, powertrain, catalytic converter, turbo charger, and manifolds of cars, trucks, SUVs, heavy duty trucks, and recreational vehicles. This segment also offers thermal and acoustical insulating solutions comprising organic and inorganic fiber composites for the automotive and truck markets. The company markets its products to original equipment manufacturers and tier-one suppliers through internal sales force and distribution network. Lydall, Inc. was founded in 1879 and is headquartered in Manchester, Connecticut.

Strattec Security Company Profile

Strattec Security Corporation engages in the design, development, manufacture, and marketing of automotive access control products under the VAST brand primarily in the United States. The company offers mechanical locks and keys, electronically enhanced locks and keys, steering column and instrument panel ignition lock housings, latches, power sliding side door systems, power lift gate systems, power deck lid systems, door handles, and related products. It also provides full service and aftermarket support services for its products. The company markets its products to automotive and light truck original equipment manufacturers, as well as other transportation-related manufacturers; and through wholesale distributors, other marketers, and users of component parts, as well as certain products to non-automotive commercial customers. It also exports its products to Europe, Asia, and South America. Strattec Security Corporation was founded in 1908 and is headquartered in Milwaukee, Wisconsin.

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