Head-To-Head Contrast: Ingersoll Rand (NYSE:IR) versus Douglas Dynamics (NYSE:PLOW)

Douglas Dynamics (NYSE:PLOW) and Ingersoll Rand (NYSE:IR) are both industrials companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.

Dividends

Douglas Dynamics pays an annual dividend of $1.18 per share and has a dividend yield of 3.0%. Ingersoll Rand pays an annual dividend of $0.08 per share and has a dividend yield of 0.1%. Douglas Dynamics pays out 53.6% of its earnings in the form of a dividend. Ingersoll Rand pays out 3.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Earnings and Valuation

This table compares Douglas Dynamics and Ingersoll Rand”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Douglas Dynamics	$656.05 million	1.40	$46.90 million	$2.20	18.06
Ingersoll Rand	$7.94 billion	3.66	$581.40 million	$2.43	30.83

Ingersoll Rand has higher revenue and earnings than Douglas Dynamics. Douglas Dynamics is trading at a lower price-to-earnings ratio than Ingersoll Rand, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Douglas Dynamics and Ingersoll Rand, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Douglas Dynamics	0	2	2	1	2.80
Ingersoll Rand	0	3	5	0	2.62

Douglas Dynamics currently has a consensus target price of $51.67, indicating a potential upside of 30.03%. Ingersoll Rand has a consensus target price of $96.14, indicating a potential upside of 28.33%. Given Douglas Dynamics’ stronger consensus rating and higher probable upside, research analysts plainly believe Douglas Dynamics is more favorable than Ingersoll Rand.

Risk & Volatility

Douglas Dynamics has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500. Comparatively, Ingersoll Rand has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500.

Profitability

This table compares Douglas Dynamics and Ingersoll Rand’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Douglas Dynamics	7.52%	19.03%	8.07%
Ingersoll Rand	12.08%	12.90%	7.22%

Insider and Institutional Ownership

91.8% of Douglas Dynamics shares are owned by institutional investors. Comparatively, 95.3% of Ingersoll Rand shares are owned by institutional investors. 1.5% of Douglas Dynamics shares are owned by insiders. Comparatively, 0.5% of Ingersoll Rand shares are owned by 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.

Summary

Ingersoll Rand beats Douglas Dynamics on 9 of the 17 factors compared between the two stocks.

About Douglas Dynamics

Douglas Dynamics, Inc. operates as a manufacturer and upfitter of commercial work truck attachments and equipment in North America. It operates through two segments, Work Truck Attachments and Work Truck Solutions. The Work Truck Attachments segment manufactures and sells snow and ice control attachments, including snowplows, and sand and salt spreaders for light trucks and heavy duty trucks, as well as various related parts and accessories. The Work Truck Solutions segment primarily manufactures municipal snow and ice control products; provides truck and vehicle upfits where it attaches component pieces of equipment, truck bodies, racking, and storage solutions to a vehicle chassis for use by end users for work related purposes; and manufactures storage solutions for trucks and vans, and cable pulling equipment for trucks. This segment also offers up-fit and storage solutions. It also provides customized turnkey solutions to governmental agencies, such as Departments of Transportation and municipalities. The company sells its products under the FISHER, SNOWEX, WESTERN, TURFEX, SWEEPEX, HENDERSON, BRINEXTREME, and DEJANA brands. It distributes its products primarily to professional snowplowers who are contracted to remove snow and ice from commercial and residential areas. The company was founded in 1948 and is headquartered in Milwaukee, Wisconsin.

About Ingersoll Rand

Ingersoll Rand Inc. provides various mission-critical air, gas, liquid, and solid flow creation technologies services and solutions worldwide. It operates through two segments, Industrial Technologies and Services, and Precision and Science Technologies. The Industrial Technologies and Services segment designs, manufactures, markets, and services air and gas compression, vacuum, and blower products; fluid transfer equipment and loading systems; and power tools and lifting equipment, including associated aftermarket parts, consumables, air treatment equipment, controls, other accessories, and services under the under the Ingersoll Rand, Gardner Denver, Nash, CompAir, Elmo Rietschle brands, etc. The Precision and Science Technologies segment designs, manufactures, and markets diaphragm, piston, water-powered, peristaltic, gear, vane, progressive cavity, and syringe pumps; and gas boosters, hydrogen compression systems, automated liquid handling systems, odorant injection systems, controls, software, and other related components and accessories for liquid and gas dosing, transfer, dispensing, compression, sampling, pressure management, and flow control in specialized or critical applications under the Air Dimensions, Albin, ARO, Dosatron, Haskel, Ingersoll Rand, LMI, Maximus, Milton Roy, MP, Oberdorfer, Seepex, Thomas, Welch, Williams, YZ, and Zinnser Analytic brand names. This segment's products are used in medical, life sciences, industrial manufacturing, water and wastewater, chemical processing, energy, food and beverage, agriculture, and other markets. It sells through an integrated network of direct sales representatives and independent distributors. The company was formerly known as Gardner Denver Holdings, Inc. and changed its name to Ingersoll Rand Inc. in March 2020. Ingersoll Rand Inc. was founded in 1859 and is headquartered in Davidson, North Carolina.