Manitowoc (NYSE: MTW) and CNH Industrial (NYSE:CNHI) are both industrial products companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, profitability and institutional ownership.

Dividends

CNH Industrial pays an annual dividend of $0.12 per share and has a dividend yield of 0.9%. Manitowoc does not pay a dividend. CNH Industrial pays out 37.5% of its earnings in the form of a dividend.

Profitability

This table compares Manitowoc and CNH Industrial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Manitowoc -4.01% -6.17% -2.38%
CNH Industrial 1.66% 14.63% 1.41%

Risk & Volatility

Manitowoc has a beta of 1.44, meaning that its share price is 44% more volatile than the S&P 500. Comparatively, CNH Industrial has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Manitowoc and CNH Industrial, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Manitowoc 0 5 7 0 2.58
CNH Industrial 0 2 6 0 2.75

Manitowoc currently has a consensus price target of $39.84, indicating a potential upside of 2.14%. CNH Industrial has a consensus price target of $14.23, indicating a potential upside of 1.30%. Given Manitowoc’s higher possible upside, research analysts clearly believe Manitowoc is more favorable than CNH Industrial.

Institutional & Insider Ownership

18.2% of CNH Industrial shares are owned by institutional investors. 2.8% of Manitowoc shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Manitowoc and CNH Industrial’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Manitowoc $1.61 billion 0.85 -$375.80 million ($1.72) -22.68
CNH Industrial $24.87 billion 0.77 -$252.00 million $0.32 43.91

CNH Industrial has higher revenue and earnings than Manitowoc. Manitowoc is trading at a lower price-to-earnings ratio than CNH Industrial, indicating that it is currently the more affordable of the two stocks.

Summary

CNH Industrial beats Manitowoc on 10 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 CNH Industrial

CNH Industrial N.V. is a capital goods company. The Company is engaged in the design, production, marketing, sale and financing of agricultural and construction equipment, trucks, commercial vehicles, buses and specialty vehicles for firefighting, defense and other uses, as well as engines, transmissions and axles for vehicles and engines under marine and power generation applications. Its segments include Agricultural Equipment, which designs, manufactures and distributes farm machinery and implements; Construction Equipment, which designs, manufactures and distributes construction equipment; Commercial Vehicles, which designs, produces and sells a range of light, medium and heavy vehicles for the transportation and distribution of goods; Powertrain, which designs, manufactures and offers a range of propulsion and transmission systems, and axles for on- and off-road applications, and Financial Services, which offers a range of financial services to dealers and customers.

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