Franklin Electric Co., Inc. (FELE) vs Kadant Inc (KAI)

Franklin Electric Co., Inc. and Kadant Inc are both Specialty Industrial Machinery companies. Franklin Electric Co., Inc. is the larger, with a market value of $4.2B against $3.5B — 1.2× the size. Franklin Electric Co., Inc. trades at the lower P/E: 21.3× against 30.0×. Kadant Inc grew revenue faster over the last twelve months: 16.6% against 7.28%. Kadant Inc has the higher net margin (9.81% vs 8.80%) and the lower return on invested capital (8.35% vs 9.45%). Both pay a dividend; Franklin Electric Co., Inc. yields more (1.17% vs 0.47%). Across the 23 metrics below, Franklin Electric Co., Inc. leads on 16 and Kadant Inc on 7.

Valuation

Metric FELE KAI Specialty Industrial Machinery median
P/E 21.25 30.03 25.64
P/S 1.87 2.96 2.81
P/B 2.93 3.42 2.99
Price to free cash flow 21.70 22.03 23.82
EV/EBITDA 13.27 16.71 15.15
EV/Sales 2.05 3.23 2.77
Earnings yield 4.71% 3.33% 3.07%
Free cash flow yield 4.61% 4.54% 3.67%

Profitability

Metric FELE KAI Specialty Industrial Machinery median
Gross margin 35.39% 44.36% 35.46%
Operating margin 12.36% 15.43% 10.04%
Net margin 8.80% 9.81% 7.24%
Free cash flow margin 8.63% 0.00% 9.04%
Return on equity 14.39% 0.00% 10.73%
Return on assets 8.60% 6.88% 4.51%
Return on invested capital 9.45% 8.35% 5.00%

Growth

Metric FELE KAI Specialty Industrial Machinery median
Revenue growth (TTM) 7.28% 16.57% 6.59%
EPS growth (last fiscal year) (16.58%) (8.76%) 5.97%
Revenue growth, 5-year CAGR 11.31% 10.63% 8.53%
Net income growth, 5-year CAGR 7.98% 13.06% 6.58%

Health

Metric FELE KAI Specialty Industrial Machinery median
Debt to equity 0.39 0.43 0.33
Current ratio 2.33 8.58 2.08
Net debt to EBITDA 0.20 1.21 1.32

Dividend

Metric FELE KAI Specialty Industrial Machinery median
Dividend yield 1.17% 0.47% 1.11%
Payout ratio 0.25 0.14 0.31

Size

Metric FELE KAI Specialty Industrial Machinery median
Market cap 4.24b 3.54b 2.19b

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