Critical Review: Newport Corp (NEWP) versus Kaman Corporation (KAMN)
Newport Corp (NASDAQ: NEWP) and Kaman Corporation (NYSE:KAMN) are both industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, dividends, risk, profitability, valuation and earnings.
Kaman Corporation pays an annual dividend of $0.80 per share and has a dividend yield of 1.5%. Newport Corp does not pay a dividend. Kaman Corporation pays out 43.2% of its earnings in the form of a dividend. Newport Corp has raised its dividend for 2 consecutive years.
Institutional & Insider Ownership
93.7% of Kaman Corporation shares are owned by institutional investors. 2.4% of Kaman Corporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This table compares Newport Corp and Kaman Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares Newport Corp 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|
|Kaman Corporation||$1.77 billion||0.82||$161.23 million||$1.85||28.01|
Kaman Corporation has higher revenue and earnings than Newport Corp.
This is a breakdown of current ratings and target prices for Newport Corp and Kaman Corporation, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Kaman Corporation has a consensus target price of $56.67, indicating a potential upside of 9.37%. Given Kaman Corporation’s higher possible upside, analysts plainly believe Kaman Corporation is more favorable than Newport Corp.
Kaman Corporation beats Newport Corp on 6 of the 11 factors compared between the two stocks.
Newport Corp Company Profile
Newport Corporation is a supplier of technology products and systems. The Company offers its products and services to a range of industries, including scientific research, microelectronics, defense and security, life and health sciences, and industrial markets. The Company operates through three business segments: Photonics Group, which includes photonics instruments and systems, vibration isolation systems and subsystems, precision positioning systems and subsystems, optical components for research applications, optical hardware, and three-dimensional non-contact measurement sensors and equipment; Lasers Group, which offers a portfolio of laser technology products and services, including ultrafast lasers and amplifiers, fiber lasers, diode-pumped solid-state lasers, and high-energy pulsed lasers and tunable lasers, and Optics Group, which offers precision optics and lens assemblies, thin-film filters and coatings, replicated mirrors, and ruled and holographic diffraction gratings.
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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