ATS Corporation (ATS) vs Kadant Inc (KAI)

ATS Corporation and Kadant Inc are both Specialty Industrial Machinery companies. Kadant Inc is the larger, with a market value of $3.2B against $1.9B — 1.8× the size. Kadant Inc trades at the lower P/E: 29.6× against 54.9×. ATS Corporation grew revenue faster over the last twelve months: 14.9% against 12.5%. Kadant Inc has the higher net margin (9.52% vs 1.61%) and the higher return on invested capital (7.70% vs 3.50%). Across the 22 metrics below, Kadant Inc leads on 13 and ATS Corporation on 9.

Valuation

Metric ATS KAI Specialty Industrial Machinery median
P/E 54.87 29.62 29.62
P/S 0.88 2.82 2.77
P/B 1.44 3.15 3.04
Price to free cash flow 12.44 20.27 23.81
EV/EBITDA 12.80 15.72 16.05
EV/Sales 1.28 3.15 2.94
Earnings yield 1.82% 3.38% 3.08%
Free cash flow yield 8.04% 4.93% 3.12%

Profitability

Metric ATS KAI Specialty Industrial Machinery median
Gross margin 28.02% 44.44% 35.90%
Operating margin 5.64% 15.04% 11.22%
Net margin 1.61% 9.52% 7.80%
Free cash flow margin 7.10% 13.93% 9.51%
Return on equity 2.69% 11.13% 11.10%
Return on assets 1.09% 6.50% 4.63%
Return on invested capital 3.50% 7.70% 5.37%

Growth

Metric ATS KAI Specialty Industrial Machinery median
Revenue growth (TTM) 14.85% 12.50% 6.45%
EPS growth (last fiscal year) 352.38% (8.76%) —
Revenue growth, 5-year CAGR 13.67% 10.63% 8.31%
Net income growth, 5-year CAGR 0.41% 13.06% 5.04%

Health

Metric ATS KAI Specialty Industrial Machinery median
Debt to equity 0.75 0.49 0.35
Current ratio 1.63 2.59 2.11
Net debt to EBITDA 3.43 1.21 1.32

Dividend

Metric ATS KAI Specialty Industrial Machinery median
Dividend yield — 0.39% 1.12%
Payout ratio — 0.11 0.17

Size

Metric ATS KAI Specialty Industrial Machinery median
Market cap 1.85b 3.24b 1.97b

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