Analyzing Art’s-Way Manufacturing (NASDAQ:ARTW) and GreenPower Motor (NASDAQ:GP)

GreenPower Motor (NASDAQ:GP) and Art’s-Way Manufacturing (NASDAQ:ARTW) are both small-cap industrials companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, valuation, dividends, risk and profitability.

Analyst Recommendations

This is a breakdown of current recommendations for GreenPower Motor and Art’s-Way Manufacturing, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GreenPower Motor	1	1	0	0	1.50
Art’s-Way Manufacturing	1	0	0	0	1.00

Profitability

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

	Net Margins	Return on Equity	Return on Assets
GreenPower Motor	-24.28%	N/A	-7.44%
Art’s-Way Manufacturing	-1.65%	-3.06%	-1.72%

Institutional and Insider Ownership

1.7% of GreenPower Motor shares are held by institutional investors. Comparatively, 2.9% of Art’s-Way Manufacturing shares are held by institutional investors. 28.1% of GreenPower Motor shares are held by company insiders. Comparatively, 51.5% of Art’s-Way Manufacturing shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

GreenPower Motor has a beta of 1.85, suggesting that its stock price is 85% more volatile than the S&P 500. Comparatively, Art’s-Way Manufacturing has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500.

Valuation and Earnings

This table compares GreenPower Motor and Art’s-Way Manufacturing”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GreenPower Motor	$15.28 million	0.03	-$5.48 million	($3.40)	-0.32
Art’s-Way Manufacturing	$22.98 million	0.61	$1.03 million	($0.09)	-30.11

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

Summary

Art’s-Way Manufacturing beats GreenPower Motor on 8 of the 11 factors compared between the two stocks.

About GreenPower Motor

GreenPower Motor Company Inc. designs, manufactures, and distributes electric vehicles for commercial markets in the United States and Canada. The company offers commercial vehicles for delivery, public transit, schools, vanpools, micro-transit, shuttles, and other; and passenger, student, low floor transit, and cargo transportation. It leases its vehicles to customers. GreenPower Motor Company Inc. was founded in 2010 and is headquartered in Vancouver, Canada.

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.