Hudson Technologies (NASDAQ: HDSN) and Applied Industrial Technologies (NYSE:AIT) are both industrial products companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, profitability, earnings, valuation, analyst recommendations, risk and institutional ownership.
This table compares Hudson Technologies and Applied Industrial Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Applied Industrial Technologies||5.43%||16.53%||8.99%|
This is a summary of current recommendations and price targets for Hudson Technologies and Applied Industrial Technologies, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Applied Industrial Technologies||0||3||0||0||2.00|
Hudson Technologies currently has a consensus target price of $7.75, suggesting a potential upside of 65.95%. Applied Industrial Technologies has a consensus target price of $63.00, suggesting a potential downside of 11.33%. Given Hudson Technologies’ stronger consensus rating and higher probable upside, research analysts clearly believe Hudson Technologies is more favorable than Applied Industrial Technologies.
Earnings & Valuation
This table compares Hudson Technologies and Applied Industrial Technologies’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Hudson Technologies||$140.38 million||1.41||$11.15 million||$0.47||9.94|
|Applied Industrial Technologies||$2.59 billion||1.06||$133.91 million||$2.84||25.02|
Applied Industrial Technologies has higher revenue and earnings than Hudson Technologies. Hudson Technologies is trading at a lower price-to-earnings ratio than Applied Industrial Technologies, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Hudson Technologies has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500. Comparatively, Applied Industrial Technologies has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500.
Insider and Institutional Ownership
76.1% of Hudson Technologies shares are held by institutional investors. Comparatively, 89.8% of Applied Industrial Technologies shares are held by institutional investors. 18.0% of Hudson Technologies shares are held by company insiders. Comparatively, 3.7% of Applied Industrial Technologies shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Applied Industrial Technologies pays an annual dividend of $1.20 per share and has a dividend yield of 1.7%. Hudson Technologies does not pay a dividend. Applied Industrial Technologies pays out 42.3% of its earnings in the form of a dividend. Applied Industrial Technologies has increased its dividend for 8 consecutive years.
Applied Industrial Technologies beats Hudson Technologies on 9 of the 17 factors compared between the two stocks.
About Hudson Technologies
Hudson Technologies, Inc. is a refrigerant services company. The Company’s products and services are primarily used in commercial air conditioning, industrial processing and refrigeration systems, and include refrigerant and industrial gas sales, refrigerant management services consisting primarily of reclamation of refrigerants and RefrigerantSide Services performed at a customer’s site, consisting of system decontamination to remove moisture, oils and other contaminants. In addition, the Company’s SmartEnergy OPS service is a Web-based real time continuous monitoring service applicable to a facility’s refrigeration systems and other energy systems. The Company’s Chiller Chemistry and Chill Smart services are also predictive and diagnostic service offerings. The Company sells reclaimed and virgin (new) refrigerants to a variety of customers in various segments of the air conditioning and refrigeration industry, and sells industrial gases to a variety of industry segments.
About Applied Industrial Technologies
Applied Industrial Technologies, Inc. is an industrial distributor in North America, Australia and New Zealand, serving maintenance, repair and operations (MRO), and original equipment manufacturing customers in various industries. In addition, the Company provides engineering, design, and systems integration for industrial and fluid power applications, as well as customized mechanical, fabricated rubber, and fluid power shop services. It operates in two segments: service center-based distribution and fluid power businesses. The service center-based distribution segment provides customers with a range of industrial products primarily through a network of service centers. The fluid power businesses segment consists of specialized regional companies that distribute fluid power components, design and assemble fluid power systems, and perform equipment repair. The fluid power businesses primarily sell products and services directly to customers rather than through the service centers.
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