Kaman Aircraft (KAMN) vs. Lawson Products (LAWS) Critical Review

Kaman Aircraft (NYSE: KAMN) and Lawson Products (NASDAQ:LAWS) are both small-cap industrial products companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, profitability, risk, dividends, institutional ownership and valuation.

Insider & Institutional Ownership

93.9% of Kaman Aircraft shares are owned by institutional investors. Comparatively, 64.8% of Lawson Products shares are owned by institutional investors. 2.4% of Kaman Aircraft shares are owned by company insiders. Comparatively, 17.5% of Lawson Products shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.



Earnings and Valuation

This table compares Kaman Aircraft and Lawson Products’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kaman Aircraft $1.81 billion 0.96 $49.82 million $2.23 27.94
Lawson Products $305.91 million 0.73 $29.68 million $0.51 49.41

Kaman Aircraft has higher revenue and earnings than Lawson Products. Kaman Aircraft is trading at a lower price-to-earnings ratio than Lawson Products, indicating that it is currently the more affordable of the two stocks.

Dividends

Kaman Aircraft pays an annual dividend of $0.80 per share and has a dividend yield of 1.3%. Lawson Products does not pay a dividend. Kaman Aircraft pays out 35.9% of its earnings in the form of a dividend. Kaman Aircraft has increased its dividend for 3 consecutive years.

Volatility & Risk

Kaman Aircraft has a beta of 0.79, meaning that its stock price is 21% less volatile than the S&P 500. Comparatively, Lawson Products has a beta of 1.23, meaning that its stock price is 23% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Kaman Aircraft and Lawson Products, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kaman Aircraft 0 1 0 0 2.00
Lawson Products 0 1 1 0 2.50

Kaman Aircraft presently has a consensus target price of $65.00, indicating a potential upside of 4.32%. Lawson Products has a consensus target price of $30.00, indicating a potential upside of 19.05%. Given Lawson Products’ stronger consensus rating and higher possible upside, analysts plainly believe Lawson Products is more favorable than Kaman Aircraft.

Profitability

This table compares Kaman Aircraft and Lawson Products’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kaman Aircraft 2.76% 10.43% 4.37%
Lawson Products 9.70% 5.31% 2.59%

Summary

Kaman Aircraft beats Lawson Products on 9 of the 17 factors compared between the two stocks.

About Kaman Aircraft

Kaman Corporation operates in the aerospace and distribution markets. It operates through two segments, Distribution and Aerospace. The Distribution segment distributes electro-mechanical products; bearings; and power transmission, motion control, and electrical and fluid power components, as well as offers value-added services. This segment serves maintenance, repair, and overhaul markets; and original equipment manufacturer customers. The Aerospace segment produces and markets aircraft bearings and components; super precision miniature ball bearings for the medical, industrial, and aerospace markets; and metallic and composite aerostructures for commercial, military, and general aviation fixed and rotary wing aircraft. This segment also provides safe and arming solutions for missile and bomb systems for the U.S. and allied militaries; undertakes helicopter subcontract works; restores, modifies, and supports its SH-2G Super Seasprite maritime helicopters; and manufactures and supports K-MAX manned and unmanned medium-to-heavy lift helicopters, as well as offers engineering design, analysis, and certification services. The company operates in North America, Europe, the Middle East, Asia, Oceania, and other countries. Kaman Corporation was founded in 1945 and is headquartered in Bloomfield, Connecticut.

About Lawson Products

Lawson Products, Inc. distributes products and services to the industrial, commercial, institutional, and government maintenance, repair, and operations marketplace in the United States, Puerto Rico, Canada, Mexico, and the Caribbean. It operates in two segments, Lawson and Bolt. The company's products include fastening systems, fluid power products, specialty chemicals, cutting tools and abrasives, electrical products, aftermarket automotive supplies, safety products, welding and metal repair products, and other products. It serves customers operating in the automotive repair, commercial vehicle maintenance, government, manufacturing, food processing, distribution, construction, oil and gas, mining, wholesale, service, and other industries. The company sells its products through sales representatives, as well as directly from its Website or through fax or phone. Lawson Products, Inc. was founded in 1952 and is headquartered in Chicago, Illinois.

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