Reviewing Kaman Aircraft (KAMN) & Hudson Technologies (HDSN)

Kaman Aircraft (NYSE: KAMN) and Hudson Technologies (NASDAQ:HDSN) are both small-cap industrial products companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, valuation, analyst recommendations, profitability, earnings, dividends and institutional ownership.

Insider and Institutional Ownership

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93.9% of Kaman Aircraft shares are held by institutional investors. Comparatively, 76.1% of Hudson Technologies shares are held by institutional investors. 2.4% of Kaman Aircraft shares are held by company insiders. Comparatively, 18.0% of Hudson Technologies shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Risk and Volatility

Kaman Aircraft has a beta of 0.79, meaning that its stock price is 21% less volatile than the S&P 500. Comparatively, Hudson Technologies has a beta of 1.23, meaning that its stock price is 23% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for Kaman Aircraft and Hudson Technologies, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kaman Aircraft 0 1 0 0 2.00
Hudson Technologies 0 1 2 0 2.67

Kaman Aircraft currently has a consensus target price of $65.00, suggesting a potential upside of 5.30%. Hudson Technologies has a consensus target price of $7.75, suggesting a potential upside of 65.95%. Given Hudson Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe Hudson Technologies is more favorable than Kaman Aircraft.

Earnings and Valuation

This table compares Kaman Aircraft and Hudson Technologies’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kaman Aircraft $1.81 billion 0.95 $49.82 million $2.23 27.68
Hudson Technologies $140.38 million 1.41 $11.15 million $0.47 9.94

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

Profitability

This table compares Kaman Aircraft and Hudson Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kaman Aircraft 2.76% 10.43% 4.37%
Hudson Technologies 7.95% 11.97% 7.83%

Dividends

Kaman Aircraft pays an annual dividend of $0.80 per share and has a dividend yield of 1.3%. Hudson Technologies does not pay a dividend. Kaman Aircraft pays out 35.9% of its earnings in the form of a dividend. Kaman Aircraft has increased its dividend for 3 consecutive years.

Summary

Hudson Technologies beats Kaman Aircraft on 10 of the 17 factors compared between the two stocks.

About Kaman Aircraft

Kaman Corporation operates in the aerospace and distribution markets. It operates through two segments, Distribution and Aerospace. The Distribution segment distributes electro-mechanical products; bearings; and power transmission, motion control, and electrical and fluid power components, as well as offers value-added services. This segment serves maintenance, repair, and overhaul markets; and original equipment manufacturer customers. The Aerospace segment produces and markets aircraft bearings and components; super precision miniature ball bearings for the medical, industrial, and aerospace markets; and metallic and composite aerostructures for commercial, military, and general aviation fixed and rotary wing aircraft. This segment also provides safe and arming solutions for missile and bomb systems for the U.S. and allied militaries; undertakes helicopter subcontract works; restores, modifies, and supports its SH-2G Super Seasprite maritime helicopters; and manufactures and supports K-MAX manned and unmanned medium-to-heavy lift helicopters, as well as offers engineering design, analysis, and certification services. The company operates in North America, Europe, the Middle East, Asia, Oceania, and other countries. Kaman Corporation was founded in 1945 and is headquartered in Bloomfield, Connecticut.

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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