Federal Signal Corporation (NYSE: FSS) and ASV Holdings (NYSE:ASV) are both small-cap multi-sector conglomerates companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, earnings, risk, valuation and dividends.

Analyst Ratings

This is a summary of current recommendations and price targets for Federal Signal Corporation and ASV Holdings, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Federal Signal Corporation 0 0 2 0 3.00
ASV Holdings 0 0 2 0 3.00

Federal Signal Corporation presently has a consensus target price of $20.00, suggesting a potential downside of 7.41%. ASV Holdings has a consensus target price of $10.75, suggesting a potential upside of 31.90%. Given ASV Holdings’ higher probable upside, analysts plainly believe ASV Holdings is more favorable than Federal Signal Corporation.

Institutional and Insider Ownership

83.7% of Federal Signal Corporation shares are held by institutional investors. 4.2% of Federal Signal Corporation shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

Federal Signal Corporation pays an annual dividend of $0.28 per share and has a dividend yield of 1.3%. ASV Holdings does not pay a dividend. Federal Signal Corporation pays out 42.4% of its earnings in the form of a dividend. Federal Signal Corporation has increased its dividend for 2 consecutive years.

Profitability

This table compares Federal Signal Corporation and ASV Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Federal Signal Corporation 5.20% 10.59% 5.78%
ASV Holdings 5.12% 11.75% 6.11%

Earnings & Valuation

This table compares Federal Signal Corporation and ASV Holdings’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Federal Signal Corporation $765.00 million 1.69 $84.40 million $0.66 32.73
ASV Holdings $110.31 million 0.72 $10.71 million N/A N/A

Federal Signal Corporation has higher revenue and earnings than ASV Holdings.

Summary

Federal Signal Corporation beats ASV Holdings on 8 of the 13 factors compared between the two stocks.

About Federal Signal Corporation

Federal Signal Corporation designs, manufactures and supplies a suite of products and integrated solutions for municipal, governmental, industrial and commercial customers. The Company’s segments include the Environmental Solutions Group and the Safety and Security Systems Group. Its Environmental Solutions Group manufactures and supplies a range of street sweeper vehicles, sewer cleaner and vacuum loader trucks, hydro-excavation trucks and waterblasting equipment. The products are sold to both municipal and industrial customers under the Elgin, Vactor, Guzzler and Jetstream brand names. Safety and Security Systems is a manufacturer and supplier of systems and products that law enforcement, fire rescue, emergency medical services, campuses military facilities and industrial sites use to protect people and property. It offers systems for campus and community alerting, emergency vehicles, first responder interoperable communications and industrial communications, among others.

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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