KLX (NASDAQ: KLXI) and Kaman Corporation (NYSE:KAMN) are both aerospace companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, profitability, risk and dividends.

Valuation & Earnings

This table compares KLX and Kaman Corporation’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
KLX $1.60 billion 1.73 $240.70 million $1.50 35.93
Kaman Corporation $1.77 billion 0.87 $161.23 million $1.85 29.96

KLX has higher revenue, but lower earnings than Kaman Corporation. Kaman Corporation is trading at a lower price-to-earnings ratio than KLX, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and price targets for KLX and Kaman Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
KLX 0 2 3 0 2.60
Kaman Corporation 0 4 1 0 2.20

KLX currently has a consensus price target of $55.00, suggesting a potential upside of 2.06%. Kaman Corporation has a consensus price target of $56.67, suggesting a potential upside of 2.23%. Given Kaman Corporation’s higher possible upside, analysts plainly believe Kaman Corporation is more favorable than KLX.

Dividends

Kaman Corporation pays an annual dividend of $0.80 per share and has a dividend yield of 1.4%. KLX does not pay a dividend. Kaman Corporation pays out 43.2% of its earnings in the form of a dividend. KLX has raised its dividend for 2 consecutive years.

Volatility and Risk

KLX has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500. Comparatively, Kaman Corporation has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500.

Profitability

This table compares KLX and Kaman Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
KLX 4.83% 4.43% 2.66%
Kaman Corporation 2.95% 9.24% 3.73%

Insider & Institutional Ownership

93.7% of Kaman Corporation shares are held by institutional investors. 1.8% of KLX shares are held by company insiders. Comparatively, 2.4% of Kaman Corporation shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Kaman Corporation beats KLX on 9 of the 17 factors compared between the two stocks.

KLX Company Profile

KLX Inc. (KLX) is the distributor and service provider of aerospace fasteners and consumables. The Company offers ranges of aerospace hardware and consumables and inventory management services across the world. The Company operates through two segments: Aerospace Solutions Group (ASG) and Energy Services Group (ESG). The Company’s ASG segment service offerings include inventory management and replenishment, creative and differential supply chain solutions, such as third-party logistics programs, special packaging and bar-coding, parts kitting, quality assurance testing and a range of purchasing assistance programs, plus the electronic data interchange capability. The Company’s ESG segment products and services include onshore completion services, wireline services, fishing services and tools, down-hole completion and production services, pressure control, accommodations and related surface rental equipment, and remanufacturing shops.

Kaman Corporation Company Profile

Kaman Corporation conducts business in the aerospace and distribution markets. The Company operates through two segments: Distribution and Aerospace. The Company’s brands include KAflex, KAron and K-MAX. Distribution segment is a power transmission, motion control, and fluid power industrial distributor with operations throughout the United States. Distribution segment conducts business in the mechanical power transmission and bearings, electrical, automation and control, and fluid power product platforms and provides total solutions from system design and integration to machine parts and services to the national manufacturing industry. Aerospace segment produces and markets aircraft bearings and components; super precision, miniature ball bearings; metallic and composite aerostructures for commercial, military and general aviation fixed and rotary wing aircraft, and safe and arming solutions for missile and bomb systems for the United States and allied militaries.

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