Analyzing Lawson Products (LAWS) and Kaman Aircraft (KAMN)

Lawson Products (NASDAQ: LAWS) and Kaman Aircraft (NYSE:KAMN) are both small-cap industrial products companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, dividends, analyst recommendations, profitability, risk, institutional ownership and valuation.

Valuation and Earnings

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This table compares Lawson Products and Kaman Aircraft’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Lawson Products $305.91 million 0.70 $29.68 million $0.51 47.55
Kaman Aircraft $1.81 billion 0.95 $49.82 million $2.23 27.68

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Lawson Products and Kaman Aircraft, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lawson Products 0 1 1 0 2.50
Kaman Aircraft 0 1 0 0 2.00

Lawson Products currently has a consensus target price of $30.00, indicating a potential upside of 23.71%. Kaman Aircraft has a consensus target price of $65.00, indicating a potential upside of 5.30%. Given Lawson Products’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Lawson Products is more favorable than Kaman Aircraft.

Risk and Volatility

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

Profitability

This table compares Lawson Products and Kaman Aircraft’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lawson Products 9.70% 5.31% 2.59%
Kaman Aircraft 2.76% 10.43% 4.37%

Dividends

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

Insider & Institutional Ownership

64.8% of Lawson Products shares are owned by institutional investors. Comparatively, 93.9% of Kaman Aircraft shares are owned by institutional investors. 18.2% of Lawson Products shares are owned by insiders. Comparatively, 2.4% of Kaman Aircraft shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Kaman Aircraft beats Lawson Products on 9 of the 17 factors compared between the two stocks.

Lawson Products Company Profile

Lawson Products, Inc. distributes products and services to the industrial, commercial, institutional, and government maintenance, repair, and operations marketplace in the United States, Puerto Rico, Canada, Mexico, and the Caribbean. It operates in two segments, Lawson and Bolt. The company's products include fastening systems, fluid power products, specialty chemicals, cutting tools and abrasives, electrical products, aftermarket automotive supplies, safety products, welding and metal repair products, and other products. It serves customers operating in the automotive repair, commercial vehicle maintenance, government, manufacturing, food processing, distribution, construction, oil and gas, mining, wholesale, service, and other industries. The company sells its products through sales representatives, as well as directly from its Website or through fax or phone. Lawson Products, Inc. was founded in 1952 and is headquartered in Chicago, Illinois.

Kaman Aircraft Company Profile

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.

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