Critical Review: Key Technology (KTEC) & Albany International (AIN)

Key Technology (NASDAQ: KTEC) and Albany International (NYSE:AIN) are both industrial products companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, risk, earnings, profitability, valuation and analyst recommendations.

Dividends

Albany International pays an annual dividend of $0.68 per share and has a dividend yield of 1.1%. Key Technology does not pay a dividend. Albany International pays out 51.1% of its earnings in the form of a dividend. Key Technology has raised its dividend for 6 consecutive years.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Key Technology and Albany International, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Key Technology 0 0 0 0 N/A
Albany International 0 1 0 0 2.00

Albany International has a consensus price target of $52.00, indicating a potential downside of 19.25%. Given Albany International’s higher possible upside, analysts clearly believe Albany International is more favorable than Key Technology.

Volatility & Risk

Key Technology has a beta of 1.02, suggesting that its stock price is 2% more volatile than the S&P 500. Comparatively, Albany International has a beta of 1.72, suggesting that its stock price is 72% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Key Technology 2.88% 6.32% 3.92%
Albany International 5.06% 9.24% 3.83%

Valuation and Earnings

This table compares Key Technology and Albany International’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Key Technology $139.91 million 0.78 $4.03 million $0.62 27.02
Albany International $779.84 million 2.66 $52.73 million $1.33 48.42

Albany International has higher revenue and earnings than Key Technology. Key Technology is trading at a lower price-to-earnings ratio than Albany International, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

47.2% of Key Technology shares are owned by institutional investors. Comparatively, 90.5% of Albany International shares are owned by institutional investors. 29.4% of Key Technology shares are owned by company insiders. Comparatively, 11.6% of Albany International shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Albany International beats Key Technology on 11 of the 15 factors compared between the two stocks.

Key Technology Company Profile

Key Technology, Inc. is a supplier of process automation solutions to the food processing industry and other industries, such as tobacco and pharmaceuticals. The Company designs, manufactures, sells and services automation equipment that processes product streams of discrete pieces. These systems integrate electro-optical automated inspection and digital sorting systems with other processing systems that include specialized conveying and preparation equipment. The Company provides parts and service for each of its product lines to customers around the world. Its automated inspection systems are used in various applications to detect and remove defects and foreign material from the product stream. It offers conveying and processing equipment, which are utilized throughout various industries to move and process product within a production plant. Its Integrated Solutions Group (ISG) provides integrated whole-line solutions. It has an installed base of inspection and processing systems.

Albany International Company Profile

Albany International Corp. is focused on textiles and materials processing business. The Company operates through two segments: Machine Clothing and Albany Engineered Composites. The Company’s Machine Clothing segment supplies permeable and impermeable belts used in the manufacture of paper, paperboard, nonwovens, fiber cement and various other industrial applications. The Machine Clothing segment also supplies customized, consumable fabrics used in the manufacturing process in the pulp, corrugator, nonwovens, fiber cement, building products, and tannery and textile industries. Its Albany Engineered Composites segment includes Albany Safran Composites, LLC (ASC), in which its customer SAFRAN Group owns interest and provides engineered composite structures based on its technology to customers in the aerospace and defense industries.

Receive News & Ratings for Key Technology Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Key Technology Inc. and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply