Analyzing Hudson Technologies (HDSN) and Applied Industrial Technologies (AIT)

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

Insider and Institutional Ownership

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76.1% of Hudson Technologies shares are owned by institutional investors. Comparatively, 90.5% of Applied Industrial Technologies shares are owned by institutional investors. 18.0% of Hudson Technologies shares are owned by company insiders. Comparatively, 3.7% of Applied Industrial Technologies shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

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

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

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.

Volatility and Risk

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

Analyst Ratings

This is a summary of current ratings for Hudson Technologies and Applied Industrial Technologies, as reported by MarketBeat.com.

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

Hudson Technologies presently has a consensus price target of $7.75, indicating a potential upside of 76.94%. Applied Industrial Technologies has a consensus price target of $63.00, indicating a potential downside of 12.56%. Given Hudson Technologies’ stronger consensus rating and higher probable upside, equities analysts plainly believe Hudson Technologies is more favorable than Applied Industrial Technologies.

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hudson Technologies $140.38 million 1.32 $11.15 million $0.47 9.32
Applied Industrial Technologies $2.59 billion 1.07 $133.91 million $2.84 25.37

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.

Summary

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

About Hudson Technologies

Hudson Technologies Inc. operates as a refrigerant services company in the United States and internationally. It sells reclaimed and virgin refrigerants, and industrial gases; provides refrigerant management services, such as reclamation of refrigerants and laboratory testing, as well as re-usable cylinder refurbishment and hydrostatic testing. The company also offers RefrigerantSide services, including system decontamination to remove moisture, oils, and other contaminants, as well as refrigerant recovery and reclamation services; predictive and diagnostic services that are intended to predict potential problems in air conditioning and refrigeration systems under the Chiller Chemistry, Fluid Chemistry, and Chill Smart names; and SmartEnergy OPS service, a Web-based real time continuous monitoring service for measuring, modifying, and enhancing the efficiency of energy systems comprising air conditioning and refrigeration systems. In addition, it participates in the generation of carbon offset projects. The company serves commercial, industrial, and governmental customers, as well as refrigerant wholesalers, distributors, contractors, and refrigeration equipment manufacturers; and customers in petrochemical, pharmaceutical, industrial power, manufacturing, commercial facility and property management, and maritime industries. Hudson Technologies, Inc. was founded in 1991 and is headquartered in Pearl River, New York.

About Applied Industrial Technologies

Applied Industrial Technologies, Inc. distributes industrial products in the United States, Puerto Rico, Canada, Mexico, Australia, New Zealand, and Singapore. The company offers its products for maintenance, repair, and operational, as well as original equipment manufacturing customers. It operates in two segments, Service Center-Based Distribution and Fluid Power Businesses. The company distributes bearings, power transmission components, fluid power components and systems, industrial rubber products, linear motion components, tools, safety products, oilfield supplies, and other industrial and maintenance supplies; and fluid power products, such as hydraulic, pneumatic, lubrication, and filtration components and systems. It also operates fabricated rubber shops that modify and repair conveyor belts, as well as provide hose assemblies; and field crews to install and repair conveyor belts and rubber lining at customer locations. In addition, the company rebuilds or assembles speed reducers, pumps, valves, cylinders, and electric and hydraulic motors, as well as custom machining products; and offers equipment repair services and technical advice to customers. It offers industrial products through a network of service centers; and fluid power products directly to customers or through service centers. The company serves various industries, including agriculture and food processing, automotive, chemicals and petrochemicals, fabricated metals, forest products, industrial machinery and equipment, mining, oil and gas, primary metals, transportation, and utilities, as well as government entities. Applied Industrial Technologies, Inc. was founded in 1923 and is headquartered in Cleveland, Ohio.

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