Analyzing Lydall (LDL) and Superior Industries International (SUP)

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Lydall (NYSE: SUP) and Superior Industries International (NYSE:SUP) are both small-cap multi-sector conglomerates companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, valuation, profitability, dividends, risk and analyst recommendations.

Profitability

This table compares Lydall and Superior Industries International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lydall 6.20% 12.74% 7.94%
Superior Industries International 1.12% 10.77% 3.15%

Insider & Institutional Ownership

91.3% of Lydall shares are held by institutional investors. Comparatively, 84.5% of Superior Industries International shares are held by institutional investors. 4.4% of Lydall shares are held by insiders. Comparatively, 1.5% of Superior Industries International shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

Superior Industries International pays an annual dividend of $0.36 per share and has a dividend yield of 1.7%. Lydall does not pay a dividend. Superior Industries International pays out 32.7% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares Lydall and Superior Industries International’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Lydall $698.44 million 1.06 $49.31 million $2.80 15.23
Superior Industries International $1.11 billion 0.49 -$6.20 million $1.10 19.64

Lydall has higher earnings, but lower revenue than Superior Industries International. Lydall is trading at a lower price-to-earnings ratio than Superior Industries International, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Lydall and Superior Industries International, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lydall 0 0 2 0 3.00
Superior Industries International 0 1 2 0 2.67

Lydall presently has a consensus price target of $57.50, indicating a potential upside of 34.82%. Superior Industries International has a consensus price target of $25.33, indicating a potential upside of 17.28%. Given Lydall’s stronger consensus rating and higher possible upside, analysts clearly believe Lydall is more favorable than Superior Industries International.

Volatility & Risk

Lydall has a beta of 1.48, suggesting that its share price is 48% more volatile than the S&P 500. Comparatively, Superior Industries International has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500.

Summary

Lydall beats Superior Industries International on 12 of the 15 factors compared between the two stocks.

About Lydall

Lydall, Inc. designs, manufactures, and markets specialty engineered filtration media, industrial thermal insulating solutions, and automotive thermal and acoustical barriers for filtration/separation and thermal/acoustical applications worldwide. It operates through Performance Materials, Technical Nonwovens, and Thermal Acoustical Solutions segments. The Performance Materials segment offers filtration media solutions for air, fluid power, and industrial applications, such as clean-space, commercial, HVAC, power generation, and industrial processes. This segment also provides non-woven veils, papers, mats, and specialty composites for the building products, appliances, and energy and industrial markets; and life sciences filtration products for biopharmaceutical pre-filtration and clarification, diagnostic and analytical testing, respiratory protection, water filtration, and high purity process filtration. The Technical Nonwovens segment offers nonwoven rolled-good felt media and filter bags used primarily in industrial air and liquid filtration applications. The Thermal Acoustical Solutions segment provides engineered products for the transportation sector to thermally shield sensitive components from high heat, improve exhaust gas treatment, and lower harmful emissions, as well as assist in the reduction of powertrain and road noise. Its products are used in the tunnel, fuel tank, rear muffler, and spare tire applications, as well as outer dash, powertrain, catalytic converter, turbo charger, and manifolds of cars, trucks, SUVs, heavy duty trucks, and recreational vehicles. This segment also offers thermal and acoustical insulating solutions comprising organic and inorganic fiber composites for the automotive and truck markets. The company markets its products to original equipment manufacturers and tier-one suppliers through internal sales force and distribution network. Lydall, Inc. was founded in 1879 and is headquartered in Manchester, Connecticut.

About Superior Industries International

Superior Industries International, Inc. designs, manufactures, and sells aluminum wheels to the original equipment manufacturers in North America. It supplies cast aluminum wheels to the automobile and light truck manufacturers. The company was founded in 1957 and is headquartered in Southfield, Michigan.

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