In the dynamic landscape of the industrial machinery sector, two companies stand out: Nordson Corporation (NDSN) and Kadant Inc. (KAI). Both are innovators in their fields, offering unique products that cater to overlapping markets. While Nordson focuses on dispensing systems and advanced technology solutions, Kadant excels in fluid handling and material processing systems. This comparative analysis seeks to uncover which company presents a more compelling investment opportunity. Are you ready to find out which one deserves a place in your portfolio?
Table of contents
Company Overview
Nordson Corporation Overview
Nordson Corporation (NDSN) is a leading global provider of precision dispensing, coating, and curing solutions. Established in 1935 and headquartered in Westlake, Ohio, Nordson operates through two main segments: Industrial Precision Solutions (IPS) and Advanced Technology Solutions (ATS). The IPS segment specializes in adhesive and coating systems utilized across various industries, while ATS focuses on innovative technologies for medical and semiconductor applications. With a market capitalization of approximately $13.27B, Nordson is well-positioned in the industrial machinery sector, leveraging its expertise to deliver high-quality solutions tailored to customer needs.
Kadant Inc. Overview
Kadant Inc. (KAI), founded in 1991 and based in Westford, Massachusetts, offers a diverse range of technologies and engineered systems across three segments: Flow Control, Industrial Processing, and Material Handling. The company’s product offerings, which include fluid-handling systems and industrial automation solutions, cater to industries such as packaging and wood products. With a market cap of around $3.43B, Kadant has established itself as a significant player in the industrial machinery space, focusing on enhancing operational efficiency and sustainability for its clients.
Key similarities and differences
Both Nordson and Kadant operate in the industrial machinery sector and focus on providing innovative solutions to diverse industries. However, while Nordson emphasizes precision dispensing and coating systems, Kadant’s offerings are broader, encompassing fluid-handling and material processing technologies. This distinction highlights their unique approaches to addressing market needs within the same industry.
Income Statement Comparison
The following table compares the income statements of Nordson Corporation and Kadant Inc. for the most recent fiscal year, facilitating a clearer understanding of their financial performance.
| Metric | Nordson Corporation (NDSN) | Kadant Inc. (KAI) |
|---|---|---|
| Market Cap | 13.27B | 3.43B |
| Revenue | 2.79B | 1.05B |
| EBITDA | 711.73M | 222.69M |
| EBIT | 561.20M | 173.10M |
| Net Income | 484.47M | 111.60M |
| EPS | 8.56 | 9.51 |
| Fiscal Year | 2025 | 2024 |
Interpretation of Income Statement
In the most recent fiscal year, Nordson Corporation experienced a revenue increase to 2.79B, reflecting a positive growth trend, while Kadant Inc. also showed growth with revenue reaching 1.05B. Despite this growth, Kadant’s net income was significantly lower at 111.60M compared to Nordson’s 484.47M. This disparity suggests that Nordson has maintained stronger profit margins and overall financial health. Additionally, both companies showed stable EBITDA margins, but Nordson appears to have improved its operating efficiency, evidenced by an increase in EBIT relative to revenue.
Financial Ratios Comparison
Below is a comparative analysis of the most recent revenue and financial ratios for Nordson Corporation (NDSN) and Kadant Inc. (KAI).
| Metric | NDSN | KAI |
|---|---|---|
| ROE | 15.94% | 13.17% |
| ROIC | 9.65% | 10.08% |
| P/E | 27.10 | 36.90 |
| P/B | 4.87 | 4.86 |
| Current Ratio | 2.41 | 2.31 |
| Quick Ratio | 1.51 | 1.55 |
| D/E | 0.79 | 0.38 |
| Debt-to-Assets | 0.39 | 0.23 |
| Interest Coverage | 7.58 | 8.55 |
| Asset Turnover | 0.45 | 0.74 |
| Fixed Asset Turnover | 4.21 | 5.78 |
| Payout Ratio | 36.96% | 13.15% |
| Dividend Yield | 1.36% | 0.36% |
Interpretation of Financial Ratios
NDSN shows a strong return on equity (ROE) compared to KAI, indicating better profitability for shareholders. However, KAI has a slightly better return on capital (ROIC) and lower debt-to-equity (D/E) ratio, suggesting a more conservative financial structure. The high P/E ratio of KAI may indicate overvaluation relative to earnings, while NDSN’s payout ratio reveals a commitment to shareholder returns. Overall, both companies exhibit strengths, but NDSN’s profitability and KAI’s lower leverage present distinct investment considerations.
Dividend and Shareholder Returns
Nordson Corporation (NDSN) pays dividends with a payout ratio of approximately 37%, offering a dividend yield of 1.36%. The company has a sustainable free cash flow coverage, but potential risks include a high price-to-earnings ratio and ongoing share buybacks. In contrast, Kadant Inc. (KAI) does pay dividends at a lower yield of 0.36% and a payout ratio of 13%. Both companies’ strategies indicate a commitment to long-term shareholder value despite differing dividend policies.
Strategic Positioning
In the industrial machinery sector, Nordson Corporation (NDSN) and Kadant Inc. (KAI) are key players with distinct market positions. Nordson commands a market cap of $13.27B, focusing on precision dispensing and coating systems, while Kadant, valued at $3.43B, specializes in fluid handling and material processing technologies. Both face competitive pressure from emerging technologies and changing market demands, necessitating continuous innovation to maintain their market shares and adapt to potential technological disruptions.
Stock Comparison
In this section, I will provide a comparative analysis of Nordson Corporation (NDSN) and Kadant Inc. (KAI), focusing on their stock price movements and trading dynamics over the past year. Notable trends, including percentage changes and volatility, will be highlighted.
Trend Analysis
Nordson Corporation (NDSN) Over the past year, NDSN has experienced a price change of -6.75%, indicating a bearish trend. The stock has shown notable volatility with a standard deviation of 23.71. Its highest price reached 278.89, while the lowest was 176.73. Currently, the trend is characterized by acceleration, which suggests that the downward movement is intensifying.
Kadant Inc. (KAI) In contrast, KAI has seen a price increase of 8.18% over the same period, reflecting a bullish trend. However, this trend is showing signs of deceleration, with a standard deviation of 34.83 indicating increased volatility. The stock peaked at 419.01 and dipped to a low of 254.91.
In the recent analysis (from September 28, 2025, to December 14, 2025), NDSN recorded a slight increase of 4.11%, while KAI experienced a decrease of 3.52%. This indicates a short-term fluctuation that could impact investor sentiment moving forward.
Analyst Opinions
Recent analyst recommendations for both Nordson Corporation (NDSN) and Kadant Inc. (KAI) indicate a consensus rating of B+. Analysts appreciate their solid return on equity and return on assets, reflecting strong operational efficiency. However, they express some caution regarding debt-to-equity and price-to-earnings ratios. Notable analysts have highlighted that both companies exhibit potential for growth, but they recommend maintaining a watchful approach given market conditions. Overall, the consensus leans towards a buy for both stocks in 2025.
Stock Grades
I found some reliable grades for two companies, Nordson Corporation (NDSN) and Kadant Inc. (KAI). Below, I present the stock ratings from verifiable grading companies.
Nordson Corporation Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Oppenheimer | maintain | Outperform | 2025-08-25 |
| Baird | maintain | Neutral | 2025-08-22 |
| Keybanc | maintain | Overweight | 2025-07-15 |
| Oppenheimer | upgrade | Outperform | 2025-05-30 |
| Baird | maintain | Neutral | 2025-05-30 |
| Keybanc | maintain | Overweight | 2025-04-08 |
| Keybanc | upgrade | Overweight | 2025-03-04 |
| Baird | maintain | Neutral | 2025-02-21 |
| Loop Capital | upgrade | Buy | 2025-01-22 |
| Seaport Global | upgrade | Buy | 2024-12-17 |
Kadant Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Barrington Research | maintain | Outperform | 2025-10-30 |
| Barrington Research | maintain | Outperform | 2025-10-29 |
| Barrington Research | maintain | Outperform | 2025-10-27 |
| Barrington Research | maintain | Outperform | 2025-10-10 |
| Barrington Research | maintain | Outperform | 2025-09-23 |
| DA Davidson | maintain | Neutral | 2025-08-04 |
| Barrington Research | maintain | Outperform | 2025-07-30 |
| Barrington Research | maintain | Outperform | 2025-07-29 |
| Barrington Research | maintain | Outperform | 2025-05-01 |
| DA Davidson | maintain | Neutral | 2025-05-01 |
Overall, both companies maintain strong ratings, with NDSN showing a mix of upgrades to “Outperform” and consistent “Neutral” ratings from analysts. KAI has a solid performance rating from Barrington Research, sustaining an “Outperform” grade across multiple evaluations. This trend suggests confidence in their growth potential, but it’s essential to monitor any shifts in sentiment as market conditions evolve.
Target Prices
The current consensus target prices for Nordson Corporation (NDSN) and Kadant Inc. (KAI) reflect positive expectations from analysts.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Nordson Corporation | 285 | 240 | 263 |
| Kadant Inc. | 410 | 275 | 342.5 |
For Nordson Corporation, the consensus target price of 263 is above its current price of 236.19, suggesting potential upside. Similarly, Kadant Inc. shows a target consensus of 342.5 compared to its current price of 291.36, indicating strong growth prospects.
Strengths and Weaknesses
The following table outlines the strengths and weaknesses of Nordson Corporation (NDSN) and Kadant Inc. (KAI), based on recent financial metrics and overall company performance.
| Criterion | Nordson Corporation (NDSN) | Kadant Inc. (KAI) |
|---|---|---|
| Diversification | Strong across segments | Moderate, focused |
| Profitability | High net profit margin (17.35%) | Moderate net profit margin (10.59%) |
| Innovation | Robust R&D initiatives | Steady technological advancements |
| Global presence | Established worldwide | Growing international footprint |
| Market Share | Significant in machinery | Competitive in niche markets |
| Debt level | Moderate (debt/equity ratio: 0.79) | Low (debt/equity ratio: 0.38) |
Key takeaways indicate that Nordson Corporation excels in profitability and innovation, positioning itself well in the industrial machinery sector. Conversely, Kadant Inc. maintains a lower debt level but has a narrower diversification strategy.
Risk Analysis
In the following table, I outline key risks associated with Nordson Corporation (NDSN) and Kadant Inc. (KAI) to help you assess their potential impact on your investment decisions.
| Metric | Nordson Corporation (NDSN) | Kadant Inc. (KAI) |
|---|---|---|
| Market Risk | Moderate | High |
| Regulatory Risk | Low | Moderate |
| Operational Risk | Moderate | High |
| Environmental Risk | Low | Moderate |
| Geopolitical Risk | Moderate | High |
Both companies face moderate market and operational risks, but Kadant Inc. exhibits a higher exposure to these factors, particularly in operational and geopolitical contexts. Given the increasing volatility in global markets and supply chains, I recommend a cautious approach towards investing in KAI.
Which one to choose?
When comparing Nordson Corporation (NDSN) and Kadant Inc. (KAI), both companies exhibit a solid B+ rating, reflecting similar overall scores across key financial metrics. NDSN showcases a higher net profit margin of 17.35% and a lower price-to-earnings ratio (P/E) of 27.1, indicating potentially more value for investors. Conversely, KAI has demonstrated a more bullish stock trend with an 8.18% price change over the past year, while NDSN is currently bearish with a -6.75% change.
For growth-oriented investors, KAI may seem appealing due to its recent bullish trend, while those prioritizing stability might lean towards NDSN given its better profitability metrics. However, both companies face risks related to market competition and supply chain dynamics.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Go further
I encourage you to read the complete analyses of Nordson Corporation and Kadant Inc. to enhance your investment decisions:
