Kadant (NYSE:KAI) and JBT Marel (NYSE:JBTM) Financial Analysis

Kadant (NYSE:KAI) and JBT Marel (NYSE:JBTM) are both mid-cap industrial products companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.

Volatility and Risk

Kadant has a beta of 1.29, suggesting that its share price is 29% more volatile than the S&P 500. Comparatively, JBT Marel has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500.

Dividends

Kadant pays an annual dividend of $1.28 per share and has a dividend yield of 0.3%. JBT Marel pays an annual dividend of $0.40 per share and has a dividend yield of 0.3%. Kadant pays out 13.5% of its earnings in the form of a dividend. JBT Marel pays out 7.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Kadant has increased its dividend for 11 consecutive years. Kadant is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Kadant and JBT Marel’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kadant	10.59%	14.66%	8.33%
JBT Marel	10.25%	10.16%	5.68%

Insider and Institutional Ownership

96.1% of Kadant shares are held by institutional investors. Comparatively, 98.9% of JBT Marel shares are held by institutional investors. 1.4% of Kadant shares are held by insiders. Comparatively, 1.1% of JBT Marel shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and target prices for Kadant and JBT Marel, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kadant	0	1	2	0	2.67
JBT Marel	0	0	1	0	3.00

Kadant currently has a consensus price target of $355.00, indicating a potential downside of 8.45%. JBT Marel has a consensus price target of $143.00, indicating a potential upside of 17.60%. Given JBT Marel’s stronger consensus rating and higher probable upside, analysts plainly believe JBT Marel is more favorable than Kadant.

Earnings & Valuation

This table compares Kadant and JBT Marel”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kadant	$1.05 billion	4.32	$111.60 million	$9.48	40.90
JBT Marel	$1.66 billion	2.33	$582.60 million	$5.39	22.56

JBT Marel has higher revenue and earnings than Kadant. JBT Marel is trading at a lower price-to-earnings ratio than Kadant, indicating that it is currently the more affordable of the two stocks.

Summary

Kadant beats JBT Marel on 11 of the 17 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 JBT Marel

JBT Marel Corporation provides technology solutions to food and beverage industry in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. It offers value-added processing that includes chilling, mixing/grinding, injecting, blending, marinating, tumbling, flattening, forming, portioning, coating, cooking, frying, freezing, extracting, pasteurizing, sterilizing, concentrating, high pressure processing, weighing, inspecting, filling, closing, sealing, end of line material handling, and packaging solutions to the food, beverage, and health market. In addition, it offers automated guided vehicle systems for material movement in the manufacturing, warehouse, and medical facilities. It serves baby food, bakery and confectionery, citrus processing, fruits and nuts, juices, non-food, pet food, pharmaceutical, plant- based beverages and protein, poultry, meat, and seafood, ready meals, oils, soups, sauces, seasoning and dressings, automotive, building material, tissue, paper, and packaging, hospitals, pharma and life sciences, fast moving consumer goods, manufacturing, warehousing, and other industries. The company markets and sells its products and solutions through direct sales force, independent distributors, sales representatives, and technical service teams. The company was formerly known as John Bean Technologies Corporation and changed its name to JBT Marel Corporation in January 2025. JBT Marel Corporation was incorporated in 1994 and is headquartered in Chicago, Illinois.