Douglas Dynamics (NYSE: PLOW) and ASV Holdings (NYSE:ASV) are both small-cap auto/tires/trucks companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Profitability

This table compares Douglas Dynamics and ASV Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Douglas Dynamics 6.16% 14.96% 4.82%
ASV Holdings 5.12% 11.75% 6.11%

Institutional and Insider Ownership

89.3% of Douglas Dynamics shares are owned by institutional investors. 3.2% of Douglas Dynamics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Douglas Dynamics and ASV Holdings’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Douglas Dynamics $465.33 million 1.85 $86.94 million $1.26 30.20
ASV Holdings $110.31 million 0.71 $10.71 million N/A N/A

Douglas Dynamics has higher revenue and earnings than ASV Holdings.

Analyst Recommendations

This is a summary of current ratings and target prices for Douglas Dynamics and ASV Holdings, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Douglas Dynamics 0 0 2 0 3.00
ASV Holdings 0 0 2 0 3.00

Douglas Dynamics presently has a consensus target price of $42.00, suggesting a potential upside of 10.38%. ASV Holdings has a consensus target price of $10.75, suggesting a potential upside of 34.54%. Given ASV Holdings’ higher probable upside, analysts clearly believe ASV Holdings is more favorable than Douglas Dynamics.

Dividends

Douglas Dynamics pays an annual dividend of $0.96 per share and has a dividend yield of 2.5%. ASV Holdings does not pay a dividend. Douglas Dynamics pays out 76.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. ASV Holdings has increased its dividend for 4 consecutive years.

Summary

Douglas Dynamics beats ASV Holdings on 8 of the 13 factors compared between the two stocks.

About Douglas Dynamics

Douglas Dynamics, Inc. is a manufacturer and up-fitter of commercial vehicle attachments and equipment. The Company’s portfolio includes snow and ice management attachments sold under the BLIZZARD, FISHER, HENDERSON, SNOWEX and WESTERN brands, turf care equipment under the TURFEX brand and industrial maintenance equipment under the SWEEPEX brand. The Company operates through two segments: Work Truck Attachments and Work Truck Solutions. The Work Truck Attachments segment includes snow and ice management attachments sold under the FISHER, WESTERN, HENDERSON and SNOWEX brands. The Work Truck Solutions segment includes the up-fit of attachments and storage solutions for commercial work vehicles under the DEJANA brand and its related sub-brands. In its Work Truck Attachments segment, the Company offers a product line of snowplows, and sand and salt spreaders for light and heavy duty trucks. Its Work Truck Solutions products consist of truck and vehicle up-fits.

About ASV Holdings

ASV Holdings, Inc. (ASV) is engaged in designing and manufacturing a range of compact track loader (CTL) and skid steer loader (SSL) equipment for construction, agricultural and forestry industries. The Company manufactures Posi-Track, rubber-tracked CTLs with multi-level suspension. CTLs are compact tracked vehicles with lift arms that functions in wet, muddy, snowy or harsh conditions and where there are slopes and grades, such as in a construction, agriculture or forestry environment. SSLs are wheeled vehicles with lift arms that can be outfitted with the same attachments as CTLs and can therefore be used in the same applications. The Company also serves as a private label original equipment manufacturer (OEM) for several manufacturers. It provides pre- and post-sale dealer support, after-sale technical support and replacement parts. The Company markets through a distribution network in North America, Australia and New Zealand under the ASV and Terex brands.

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