Head-To-Head Comparison: Manitowoc (MTW) vs. Astec Industries (ASTE)

Manitowoc (NYSE: MTW) and Astec Industries (NASDAQ:ASTE) 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 profitability, institutional ownership, earnings, analyst recommendations, risk, dividends and valuation.

Dividends

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

Earnings and Valuation

This table compares Manitowoc and Astec Industries’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Manitowoc $1.58 billion 0.62 $9.40 million ($0.26) -107.04
Astec Industries $1.18 billion 1.05 $37.79 million $1.58 34.28

Astec Industries has lower revenue, but higher earnings than Manitowoc. Manitowoc 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 Manitowoc and Astec Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Manitowoc 0.59% -1.54% -0.61%
Astec Industries 3.19% 5.43% 4.17%

Risk & Volatility

Manitowoc has a beta of 1.54, meaning that its stock price is 54% more volatile than the S&P 500. Comparatively, Astec Industries has a beta of 1.13, meaning that its stock price is 13% more volatile than the S&P 500.

Institutional & Insider Ownership

79.1% of Manitowoc shares are owned by institutional investors. Comparatively, 93.1% of Astec Industries shares are owned by institutional investors. 1.4% of Manitowoc shares are owned by company insiders. Comparatively, 1.7% of Astec Industries shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and target prices for Manitowoc and Astec Industries, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Manitowoc 1 5 5 0 2.36
Astec Industries 0 1 3 0 2.75

Manitowoc presently has a consensus target price of $39.36, suggesting a potential upside of 41.44%. Astec Industries has a consensus target price of $67.50, suggesting a potential upside of 24.61%. Given Manitowoc’s higher possible upside, equities research analysts plainly believe Manitowoc is more favorable than Astec Industries.

Summary

Astec Industries beats Manitowoc on 11 of the 16 factors compared between the two stocks.

About Manitowoc

The Manitowoc Company, Inc. is a provider of engineered lifting equipment for the construction industry. The Company operates through the Crane business segment. It designs, manufactures and distributes a line of crawler-mounted lattice-boom cranes, which it sells under the Manitowoc brand name. It also designs and manufactures a line of top-slewing and self-erecting tower cranes, which it sells under the Potain brand name. It designs and manufactures mobile telescopic cranes, which it sells under the Grove brand name and a line of hydraulically powered telescopic boom trucks, which it sells under the National Crane brand name. It also provides crane product parts and services and crane rebuilding, remanufacturing and training services, which are delivered under the Manitowoc Crane Care brand name. Its crane products are used in a range of applications, including energy production/distribution and utilities, petrochemical and industrial projects, and infrastructure applications.

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.

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