THT Heat Transfer Technology (OTCMKTS:THTI) vs. Kadant (NYSE:KAI) Critical Comparison

Kadant (NYSE:KAI) and THT Heat Transfer Technology (OTCMKTS:THTI) are both industrials companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.

Profitability

This table compares Kadant and THT Heat Transfer Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kadant	10.34%	12.62%	7.66%
THT Heat Transfer Technology	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Kadant and THT Heat Transfer Technology, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kadant	0	1	1	0	2.50
THT Heat Transfer Technology	0	0	0	0	0.00

Kadant currently has a consensus target price of $340.00, suggesting a potential upside of 12.38%. Given Kadant’s stronger consensus rating and higher possible upside, equities analysts plainly believe Kadant is more favorable than THT Heat Transfer Technology.

Valuation and Earnings

This table compares Kadant and THT Heat Transfer Technology”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kadant	$1.05 billion	3.38	$111.60 million	$8.98	33.69
THT Heat Transfer Technology	N/A	N/A	N/A	N/A	N/A

Kadant has higher revenue and earnings than THT Heat Transfer Technology.

Insider and Institutional Ownership

96.1% of Kadant shares are owned by institutional investors. 1.4% of Kadant shares are owned by insiders. Comparatively, 22.4% of THT Heat Transfer Technology shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Kadant beats THT Heat Transfer Technology on 8 of the 9 factors compared between the two stocks.

About Kadant

Kadant Inc. supplies technologies and engineered systems worldwide. It operates in three segments: Flow Control, Industrial Processing, and Material Handling. The Flow Control segment develops, manufactures, and markets fluid-handling systems and equipment, such as rotary joints, syphons, turbulator bars, expansion joints, and engineered steam and condensate systems; and doctoring, cleaning, and filtration systems and related consumables consisting of doctor systems and holders, doctor blades, cleaning shower and fabric-conditioning systems, forming systems and wear surfaces, and water-filtration systems. The Industrial Processing segment develops, manufactures, and markets ring and rotary debarkers, stranders, chippers, engineered knife systems, industrial automation and control, recycling and approach flow systems, and virgin pulping process equipment for use in the packaging, tissue, wood products, and alternative fuel industries. The Material Handling segment offers conveying and vibratory equipment, and baling products; and manufactures and sells biodegradable absorbent granules for carriers in agricultural, home lawn and garden, professional lawn, turf, and ornamental applications, as well as for oil and grease absorption. The company markets and sells its products, services, and systems through direct sales, independent sales agents, and distributors. The company was formerly known as Thermo Fibertek, Inc. and changed its name to Kadant Inc. in July 2001. Kadant Inc. was incorporated in 1991 and is headquartered in Westford, Massachusetts.

About THT Heat Transfer Technology

THT Heat Transfer Technology, Inc. engages in the manufacture and trading of plate heat exchangers and related products. It offers plate heat exchangers, heat exchanger units, air-cooled heat exchangers, and shell-and-tube heat exchangers. The company was founded on August 7, 2006 and is headquartered in Siping, China.