Albany International (NYSE:AIN) & Hydrofarm Holdings Group (NASDAQ:HYFM) Critical Comparison

Albany International (NYSE:AIN) and Hydrofarm Holdings Group (NASDAQ:HYFM) are both small-cap industrials companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.

Insider and Institutional Ownership

97.4% of Albany International shares are owned by institutional investors. Comparatively, 26.6% of Hydrofarm Holdings Group shares are owned by institutional investors. 0.6% of Albany International shares are owned by company insiders. Comparatively, 14.9% of Hydrofarm Holdings Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

Albany International has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500. Comparatively, Hydrofarm Holdings Group has a beta of 2.53, indicating that its stock price is 153% more volatile than the S&P 500.

Earnings & Valuation

This table compares Albany International and Hydrofarm Holdings Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Albany International	$1.18 billion	1.63	-$57.34 million	$3.09	22.01
Hydrofarm Holdings Group	$134.25 million	0.03	-$289.79 million	($60.70)	-0.01

Albany International has higher revenue and earnings than Hydrofarm Holdings Group. Hydrofarm Holdings Group is trading at a lower price-to-earnings ratio than Albany International, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Albany International and Hydrofarm Holdings Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Albany International	6.73%	14.25%	6.26%
Hydrofarm Holdings Group	-267.20%	-500.33%	-159.25%

Analyst Ratings

This is a summary of current recommendations for Albany International and Hydrofarm Holdings Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Albany International	0	4	0	1	2.40
Hydrofarm Holdings Group	1	0	0	0	1.00

Albany International currently has a consensus target price of $72.33, indicating a potential upside of 6.35%. Given Albany International’s stronger consensus rating and higher possible upside, equities analysts clearly believe Albany International is more favorable than Hydrofarm Holdings Group.

Summary

Albany International beats Hydrofarm Holdings Group on 12 of the 14 factors compared between the two stocks.

About Albany International

Albany International Corporation is a materials science and manufacturing company founded in 1895 as Albany Felt Company. It operates through two businesses: Machine Clothing and Albany Engineered Composites. Machine Clothing makes permeable fabrics and belts used in paper production, as well as products for paperboard, tissue and other industrial applications. Albany Engineered Composites designs and manufactures advanced composite structures and components, primarily for the aerospace and defense industries.

About Hydrofarm Holdings Group

Hydrofarm Holdings Group, Inc. (NASDAQ:HYFM) is a distributor and manufacturer of hydroponic and controlled-environment agriculture equipment and supplies. The company serves commercial and hobbyist growers, specialty retailers, and other customers involved in indoor and greenhouse cultivation, primarily in the United States and Canada. Its product portfolio includes grow lighting, hydroponic systems, growing media, nutrients and supplements, irrigation equipment, environmental-control systems, propagation supplies, containers, pest-management products, and related cultivation accessories.