Gentex (GNTX) & Lydall (NYSE:LDL) Financial Contrast

Lydall (NYSE: LDL) and Gentex (NASDAQ:GNTX) are both multi-sector conglomerates companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, dividends, earnings and risk.

Dividends

Gentex pays an annual dividend of $0.44 per share and has a dividend yield of 1.9%. Lydall does not pay a dividend. Gentex pays out 34.4% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of recent ratings and price targets for Lydall and Gentex, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lydall 0 0 2 0 3.00
Gentex 0 4 5 0 2.56

Lydall currently has a consensus price target of $59.00, indicating a potential upside of 35.17%. Gentex has a consensus price target of $25.67, indicating a potential upside of 11.50%. Given Lydall’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Lydall is more favorable than Gentex.

Volatility and Risk

Lydall has a beta of 1.46, suggesting that its stock price is 46% more volatile than the S&P 500. Comparatively, Gentex has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500.

Profitability

This table compares Lydall and Gentex’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lydall 6.67% 13.75% 8.30%
Gentex 23.27% 19.05% 16.41%

Valuation and Earnings

This table compares Lydall and Gentex’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Lydall $698.44 million 1.09 $49.31 million $2.80 15.59
Gentex $1.79 billion 3.51 $406.79 million $1.28 17.98

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

Institutional & Insider Ownership

91.7% of Lydall shares are owned by institutional investors. Comparatively, 82.5% of Gentex shares are owned by institutional investors. 4.4% of Lydall shares are owned by company insiders. Comparatively, 0.6% of Gentex shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Gentex beats Lydall on 9 of the 16 factors compared between the two stocks.

Lydall Company Profile

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.

Gentex Company Profile

Gentex Corporation provides automatic-dimming and non-dimming rearview mirrors, and electronics for the automotive industry; dimmable aircraft windows for the aviation industry; and commercial smoke alarms and signaling devices for the fire protection industry worldwide. It designs, develops, manufactures, and markets automotive products, including interior and exterior electrochromic automatic-dimming rearview mirrors, automotive electronics, and interior and exterior non-automatic-dimming rearview mirrors with electronic features for automotive passenger cars, light trucks, pick-up trucks, sport utility vehicles, and vans for original equipment manufacturers, tier one automotive mirror manufacturers, and various aftermarket and accessory customers. The company also provides photoelectric smoke detectors and alarms, audible and visual signaling alarms, electrochemical carbon monoxide detectors and alarms, and bells and speakers for use in fire detection systems in office buildings, hotels, and other commercial and residential establishments. Gentex Corporation sells its fire protection products directly, as well as through sales managers and manufacturer representative organizations to fire protection and security product distributors, electrical wholesale houses, and original equipment manufacturers of fire protection systems. The company was founded in 1974 and is headquartered in Zeeland, Michigan.

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