Hudson Technologies (NASDAQ:HDSN) vs. MSC Industrial Direct (NYSE:MSM) Critical Analysis

Hudson Technologies (NASDAQ:HDSNGet Free Report) and MSC Industrial Direct (NYSE:MSMGet Free Report) are both industrials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, profitability, risk, earnings, analyst recommendations and valuation.

Insider & Institutional Ownership

71.3% of Hudson Technologies shares are held by institutional investors. Comparatively, 79.3% of MSC Industrial Direct shares are held by institutional investors. 8.0% of Hudson Technologies shares are held by insiders. Comparatively, 19.0% of MSC Industrial Direct shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Hudson Technologies and MSC Industrial Direct, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hudson Technologies 0 3 2 0 2.40
MSC Industrial Direct 0 9 0 0 2.00

Hudson Technologies presently has a consensus price target of $9.33, suggesting a potential upside of 26.13%. MSC Industrial Direct has a consensus price target of $90.50, suggesting a potential downside of 3.75%. Given Hudson Technologies’ stronger consensus rating and higher possible upside, analysts plainly believe Hudson Technologies is more favorable than MSC Industrial Direct.

Profitability

This table compares Hudson Technologies and MSC Industrial Direct’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hudson Technologies 9.60% 8.97% 7.18%
MSC Industrial Direct 5.37% 15.73% 8.78%

Volatility and Risk

Hudson Technologies has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500. Comparatively, MSC Industrial Direct has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500.

Earnings and Valuation

This table compares Hudson Technologies and MSC Industrial Direct”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hudson Technologies $236.85 million 1.34 $24.39 million $0.50 14.80
MSC Industrial Direct $3.77 billion 1.39 $199.33 million $3.66 25.69

MSC Industrial Direct has higher revenue and earnings than Hudson Technologies. Hudson Technologies is trading at a lower price-to-earnings ratio than MSC Industrial Direct, indicating that it is currently the more affordable of the two stocks.

Summary

MSC Industrial Direct beats Hudson Technologies on 9 of the 14 factors compared between the two stocks.

About Hudson Technologies

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Hudson Technologies, Inc., through its subsidiary, Hudson Technologies Company, engages in the provision of solutions to recurring problems within the refrigeration industry in the United States. The company engages in the sale of refrigerant and industrial gas; provision of refrigerant management services consisting primarily of reclamation of refrigerants, re-usable cylinder refurbishment, and hydrostatic testing services; and RefrigerantSide services comprising system decontamination and recovery to remove moisture, oils, and other contaminants. It also offers Chiller Chemistry, which integrates several fluid tests of an operating system and the corresponding laboratory results into an engineering report; Fluid Chemistry, an abbreviated version of Chiller Chemistry, which is designed to quickly identify systems that require further examination; SmartEnergy OPS, a web-based real time continuous monitoring system, for measuring, modifying and improving the efficiency of energy systems, including air conditioning and refrigeration systems, in industrial and commercial applications; and ChillSmart, which combines the system optimization with Chiller Chemistry for providing a snapshot of a packaged chiller's operating efficiency and health. In addition, the company participates in the generation of carbon offset projects. It serves commercial, industrial, and governmental customers, as well as refrigerant wholesalers, distributors, contractors, and refrigeration equipment manufacturers. The company was incorporated in 1991 and is headquartered in Woodcliff Lake, New Jersey.

About MSC Industrial Direct

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MSC Industrial Direct Co., Inc., together with its subsidiaries, distributes metalworking and maintenance, repair, and operations (MRO) products and services in the United States, Canada, Mexico, the United Kingdom, and internationally. The company's MRO products include cutting tools, measuring instruments, tooling components, metalworking products, fasteners, flat stock products, raw materials, abrasives, machinery hand and power tools, safety and janitorial supplies, plumbing supplies, materials handling products, power transmission components, and electrical supplies. It offers stock-keeping units through its catalogs and brochures; e-commerce channels, including its website, mscdirect.com; inventory management solutions; and customer care centers, customer fulfillment centers, regional inventory centers, and warehouses. The company serves individual machine shops, manufacturing companies, and government agencies. MSC Industrial Direct Co., Inc. was founded in 1941 and is headquartered in Melville, New York.

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