KLX (NASDAQ: KLXIV) and Barnes Group (NYSE:B) are both industrials companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, earnings, profitability, dividends, analyst recommendations, valuation and institutional ownership.

Institutional and Insider Ownership

85.1% of Barnes Group shares are owned by institutional investors. 8.5% of Barnes Group shares are owned 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 Recommendations

This is a summary of recent ratings and price targets for KLX and Barnes Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
KLX 0 0 0 0 N/A
Barnes Group 0 2 3 0 2.60

Barnes Group has a consensus price target of $65.75, indicating a potential downside of 8.09%. Given Barnes Group’s higher possible upside, analysts clearly believe Barnes Group is more favorable than KLX.

Profitability

This table compares KLX and Barnes Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
KLX 4.81% 3.68% 2.20%
Barnes Group 11.69% 13.02% 7.20%

Earnings and Valuation

This table compares KLX and Barnes Group’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
KLX N/A N/A N/A N/A N/A
Barnes Group $1.34 billion 2.87 $305.46 million $2.86 25.01

Barnes Group has higher revenue and earnings than KLX.

Dividends

Barnes Group pays an annual dividend of $0.56 per share and has a dividend yield of 0.8%. KLX does not pay a dividend. Barnes Group pays out 19.6% of its earnings in the form of a dividend. Barnes Group has increased its dividend for 4 consecutive years.

Summary

Barnes Group beats KLX on 10 of the 11 factors compared between the two stocks.

KLX Company Profile

KLX Inc. (KLX) is the distributor and service provider of aerospace fasteners and consumables. The Company offers ranges of aerospace hardware and consumables and inventory management services across the world. The Company operates through two segments: Aerospace Solutions Group (ASG) and Energy Services Group (ESG). The Company’s ASG segment service offerings include inventory management and replenishment, creative and differential supply chain solutions, such as third-party logistics programs, special packaging and bar-coding, parts kitting, quality assurance testing and a range of purchasing assistance programs, plus the electronic data interchange capability. The Company’s ESG segment products and services include onshore completion services, wireline services, fishing services and tools, down-hole completion and production services, pressure control, accommodations and related surface rental equipment, and remanufacturing shops.

Barnes Group Company Profile

Barnes Group Inc. is an industrial and aerospace manufacturer and service provider, serving a range of end markets and customers. The Company’s engineered products, industrial technologies, and solutions are used in applications that provide transportation, manufacturing, healthcare products and technology to the world. Its segments include Industrial and Aerospace. The Industrial segment is engaged in the manufacturing of precision parts, products and systems for applications serving a customer base in end-markets, such as transportation, industrial equipment, consumer products, packaging, electronics, medical devices and energy. The Industrial segment includes the Molding Solutions, Nitrogen Gas Products and Engineered Components business units. The Aerospace segment includes the original equipment manufacturer (OEM) business and the aftermarket business, which includes maintenance repair and overhaul services and the manufacture and delivery of aerospace aftermarket spare parts.

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