Contrasting Astec Industries (ASTE) & A.S.V. (ASV)

Astec Industries (NASDAQ: ASTE) and A.S.V. (NASDAQ:ASV) are both small-cap industrial products companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, valuation, earnings, profitability, analyst recommendations, dividends and risk.

Insider and Institutional Ownership

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93.1% of Astec Industries shares are owned by institutional investors. Comparatively, 41.5% of A.S.V. shares are owned by institutional investors. 1.7% of Astec Industries shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Astec Industries and A.S.V., as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Astec Industries 0 1 3 0 2.75
A.S.V. 0 0 3 0 3.00

Astec Industries presently has a consensus target price of $67.50, suggesting a potential upside of 24.61%. A.S.V. has a consensus target price of $10.92, suggesting a potential upside of 55.95%. Given A.S.V.’s stronger consensus rating and higher probable upside, analysts clearly believe A.S.V. is more favorable than Astec Industries.

Dividends

Astec Industries pays an annual dividend of $0.40 per share and has a dividend yield of 0.7%. A.S.V. does not pay a dividend. Astec Industries pays out 25.3% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares Astec Industries and A.S.V.’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Astec Industries $1.18 billion 1.05 $37.79 million $1.58 34.28
A.S.V. $123.34 million 0.56 $1.70 million $0.22 31.82

Astec Industries has higher revenue and earnings than A.S.V.. A.S.V. is trading at a lower price-to-earnings ratio than Astec Industries, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Astec Industries and A.S.V.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Astec Industries 3.19% 5.43% 4.17%
A.S.V. 1.39% 3.43% 1.89%

Summary

Astec Industries beats A.S.V. on 11 of the 14 factors compared between the two stocks.

About Astec Industries

Astec Industries, Inc. designs, engineers, manufactures and markets equipment and components used primarily in road building and related construction activities. Its segments include Infrastructure Group, Aggregate and Mining Group and Energy Group. The Infrastructure Group segment is made up of five business units, including Astec, Inc., Roadtec, Inc., Carlson Paving Products, Inc., Astec Mobile Machinery GmbH and Astec Australia Pty Ltd. Its Aggregate and Mining Group consists of eight business units that are focused on designing and manufacturing heavy processing equipment, as well as servicing and supplying parts for the aggregate, metallic mining, recycling, ports and bulk handling markets. Its Energy Group includes five business units focused on supplying heavy equipment, such as heaters, drilling rigs, concrete plants, wood chippers and grinders, pump trailers, storage equipment and related parts to the oil and gas, construction and water well industries.

About A.S.V.

ASV Holdings, Inc. (ASV) is engaged in designing and manufacturing a range of compact track loader (CTL) and skid steer loader (SSL) equipment for construction, agricultural and forestry industries. The Company manufactures Posi-Track, rubber-tracked CTLs with multi-level suspension. CTLs are compact tracked vehicles with lift arms that functions in wet, muddy, snowy or harsh conditions and where there are slopes and grades, such as in a construction, agriculture or forestry environment. SSLs are wheeled vehicles with lift arms that can be outfitted with the same attachments as CTLs and can therefore be used in the same applications. The Company also serves as a private label original equipment manufacturer (OEM) for several manufacturers. It provides pre- and post-sale dealer support, after-sale technical support and replacement parts. The Company markets through a distribution network in North America, Australia and New Zealand under the ASV and Terex brands.

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