Financial Comparison: Edgen Group (EDG) & Kaman (KAMN)
Edgen Group (NYSE: EDG) and Kaman (NYSE:KAMN) are both small-cap industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, profitability, valuation, dividends and risk.
Kaman pays an annual dividend of $0.80 per share and has a dividend yield of 1.4%. Edgen Group does not pay a dividend. Kaman pays out 44.2% of its earnings in the form of a dividend. Kaman has raised its dividend for 3 consecutive years.
92.6% of Kaman shares are owned by institutional investors. 2.4% of Kaman shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This is a summary of current ratings and target prices for Edgen Group and Kaman, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Kaman has a consensus target price of $60.00, suggesting a potential upside of 1.80%. Given Kaman’s higher possible upside, analysts clearly believe Kaman is more favorable than Edgen Group.
This table compares Edgen Group and Kaman’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares Edgen Group and Kaman’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Kaman||$1.81 billion||0.91||$58.85 million||$1.81||32.56|
Kaman has higher revenue and earnings than Edgen Group. Edgen Group is trading at a lower price-to-earnings ratio than Kaman, indicating that it is currently the more affordable of the two stocks.
Kaman beats Edgen Group on 12 of the 13 factors compared between the two stocks.
About Edgen Group
Edgen Group Inc. (Edgen Group) is a holding company. The Company is a distributor of specialty products to the energy sector, including highly engineered steel pipe, valves, quenched and tempered and high yield heavy plate and related components. Its segments include Energy and Infrastructure Products (E&I) and Oil Country Tubular Goods (OCTG). The Company primarily serve customers that operate in the upstream (conventional and unconventional exploration, drilling and production of oil and natural gas in both onshore and offshore environments), midstream (gathering, processing, fractionation, transportation and storage of oil and natural gas) and downstream (refining and petrochemical applications) end markets for oil and natural gas. It also serves power generation, civil construction and mining applications. In December 2012, the Company, through its subsidiary acquired HSP Group Limited (HSP).
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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