Art’s-Way Manufacturing (NASDAQ:ARTW) & Allison Transmission (NYSE:ALSN) Head to Head Contrast

Allison Transmission (NYSE:ALSN) and Art’s-Way Manufacturing (NASDAQ:ARTW) are both industrials companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.

Analyst Recommendations

This is a summary of recent ratings and price targets for Allison Transmission and Art’s-Way Manufacturing, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allison Transmission	0	5	2	1	2.50
Art’s-Way Manufacturing	1	0	0	0	1.00

Allison Transmission presently has a consensus price target of $131.17, suggesting a potential upside of 14.93%. Given Allison Transmission’s stronger consensus rating and higher probable upside, equities analysts plainly believe Allison Transmission is more favorable than Art’s-Way Manufacturing.

Profitability

This table compares Allison Transmission and Art’s-Way Manufacturing’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Allison Transmission	12.02%	38.18%	9.99%
Art’s-Way Manufacturing	-0.08%	-0.16%	-0.10%

Volatility and Risk

Allison Transmission has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500. Comparatively, Art’s-Way Manufacturing has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500.

Insider & Institutional Ownership

96.9% of Allison Transmission shares are owned by institutional investors. Comparatively, 2.9% of Art’s-Way Manufacturing shares are owned by institutional investors. 1.1% of Allison Transmission shares are owned by company insiders. Comparatively, 51.5% of Art’s-Way Manufacturing shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Allison Transmission and Art’s-Way Manufacturing”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allison Transmission	$3.01 billion	3.13	$623.00 million	$6.29	18.14
Art’s-Way Manufacturing	$22.98 million	0.74	$1.03 million	($0.01)	-327.00

Allison Transmission has higher revenue and earnings than Art’s-Way Manufacturing. Art’s-Way Manufacturing is trading at a lower price-to-earnings ratio than Allison Transmission, indicating that it is currently the more affordable of the two stocks.

Summary

Allison Transmission beats Art’s-Way Manufacturing on 13 of the 15 factors compared between the two stocks.

About Allison Transmission

Allison Transmission Holdings, Inc., together with its subsidiaries, designs, manufactures, and sells fully automatic transmissions for medium- and heavy-duty commercial vehicles and medium- and heavy-tactical U.S. defense vehicles, and electrified propulsion systems worldwide. It provides commercial-duty on-highway, off-highway and defense fully automatic transmissions, and electric hybrid and fully electric systems. The company offers transmissions for various applications, including distribution, refuse, construction, fire, and emergency on-highway trucks; school and transit buses; motor homes; energy, mining, and construction off-highway vehicles and equipment; and wheeled and tracked defense vehicles. It provides its transmissions and electric propulsion solutions under the Allison Transmission brand name; and remanufactured transmissions under the ReTran brand name. The company also sells branded replacement parts, support equipment, aluminum die cast components, and other products necessary to service the installed base of vehicles utilizing its solutions, as well as defense kits, engineering services, and extended transmission coverage services to various original equipment manufacturers, distributors, and the U.S. government. It serves customers through an independent network of approximately 1,600 independent distributor and dealer locations. The company was formerly known as Clutch Holdings, Inc. Allison Transmission Holdings, Inc. was founded in 1915 and is headquartered in Indianapolis, Indiana.

About Art’s-Way Manufacturing

Art’s-Way Manufacturing Co., Inc. manufactures and distributes farm equipment products. It operates through the Agricultural Products, and Modular Buildings segments. The Agricultural Products segment manufactures a variety of specialized farm machinery under its own label including portable and stationary animal feed processing equipment and related attachments used to mill and mix feed grains into custom animal feed rations, a line of forage equipment consisting of forage boxes, bale processors, running gear, and dump boxes, a line of manure spreaders, sugar beet harvesting equipment, and a line of dirt work equipment. The Modular Buildings segment produces and sells modular buildings, which are custom designed to meet the specific research needs of its customers. It also provides services relating to the design, manufacturing, delivery, installation and renting of the building units that it produces. The company was founded by Arthur Luscombe in 1956 and is headquartered in Armstrong, IA.