Comparing Albany International (NYSE:AIN) and Thermwood (OTCMKTS:TOOD)

Albany International (NYSE:AIN) and Thermwood (OTCMKTS:TOOD) are both small-cap industrials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, earnings, risk, profitability and valuation.

Risk and Volatility

Albany International has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500. Comparatively, Thermwood has a beta of 0.08, meaning that its stock price is 92% less volatile than the S&P 500.

Profitability

This table compares Albany International and Thermwood’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Albany International	-4.18%	10.76%	4.64%
Thermwood	N/A	N/A	N/A

Valuation and Earnings

This table compares Albany International and Thermwood”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Albany International	$1.22 billion	1.37	-$57.34 million	($1.74)	-34.01
Thermwood	N/A	N/A	N/A	N/A	N/A

Thermwood has lower revenue, but higher earnings than Albany International.

Institutional and Insider Ownership

97.4% of Albany International shares are owned by institutional investors. 0.6% of Albany International shares are owned by company insiders. Comparatively, 67.5% of Thermwood shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Albany International and Thermwood, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Albany International	1	3	0	0	1.75
Thermwood	0	0	0	0	0.00

Albany International presently has a consensus target price of $54.00, indicating a potential downside of 8.74%. Given Albany International’s stronger consensus rating and higher possible upside, equities analysts plainly believe Albany International is more favorable than Thermwood.

Summary

Albany International beats Thermwood on 7 of the 9 factors compared between the two stocks.

About Albany International

Albany International Corp., together with its subsidiaries, engages in the machine clothing and engineered composites businesses. The company operates in two segments, Machine Clothing (MC) and Albany Engineered Composites (AEC). The MC segment designs, manufactures, and markets paper machine clothing for use in the manufacturing of papers, paperboards, tissues, towels, pulps, nonwovens, building products, tannery, and textiles, as well as fiber cement and several other industrial applications. This segment offers paper machine clothing forming, pressing, and drying fabrics, as well as engineered processing belts; and engineered fabrics. The AEC segment 3D-woven and injected composite components for aircraft engines composite airframe and engine components for military and commercial aircraft. It operates in the United States, Switzerland, France, Brazil, China, Mexico, Germany, and internationally. The company was incorporated in 1895 and is headquartered in Rochester, New Hampshire.

About Thermwood

Thermwood Corporation develops, manufacturers, and distributes technology based products and software for the manufacturing sector. It offers three axis CNC routers, such as cabinetshop series, multi-purpose three axis series, framebuilder series, carvingshop series, and signrouter series; multi-purpose five axis series for trimming formed parts, patterns, or molds; and edge banders. The company markets its products and services through offices in 11 countries. Thermwood Corporation was founded in 1969 and is headquartered in Dale, Indiana.