Hyster-Yale Materials Handling (NYSE: HY) and ASV Holdings (NYSE:ASV) are both small-cap industrial products companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.

Institutional & Insider Ownership

51.9% of Hyster-Yale Materials Handling shares are owned by institutional investors. 26.3% of Hyster-Yale Materials Handling shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and target prices for Hyster-Yale Materials Handling and ASV Holdings, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hyster-Yale Materials Handling 1 1 1 0 2.00
ASV Holdings 0 0 2 0 3.00

Hyster-Yale Materials Handling currently has a consensus target price of $74.00, suggesting a potential downside of 8.56%. ASV Holdings has a consensus target price of $10.75, suggesting a potential upside of 34.71%. Given ASV Holdings’ stronger consensus rating and higher probable upside, analysts clearly believe ASV Holdings is more favorable than Hyster-Yale Materials Handling.

Dividends

Hyster-Yale Materials Handling pays an annual dividend of $1.21 per share and has a dividend yield of 1.5%. ASV Holdings does not pay a dividend. Hyster-Yale Materials Handling pays out 31.6% of its earnings in the form of a dividend. ASV Holdings has increased its dividend for 4 consecutive years.

Profitability

This table compares Hyster-Yale Materials Handling and ASV Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hyster-Yale Materials Handling 2.27% 11.34% 4.04%
ASV Holdings 5.12% 11.75% 6.11%

Earnings & Valuation

This table compares Hyster-Yale Materials Handling and ASV Holdings’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Hyster-Yale Materials Handling $2.57 billion 0.52 $42.80 million $3.83 21.13
ASV Holdings N/A N/A N/A $0.06 133.00

Hyster-Yale Materials Handling has higher revenue and earnings than ASV Holdings. Hyster-Yale Materials Handling is trading at a lower price-to-earnings ratio than ASV Holdings, indicating that it is currently the more affordable of the two stocks.

Summary

ASV Holdings beats Hyster-Yale Materials Handling on 8 of the 13 factors compared between the two stocks.

About Hyster-Yale Materials Handling

Hyster-Yale Materials Handling, Inc. is a lift truck manufacturer. The Company designs, engineers, manufactures, sells and services a line of lift trucks, attachments and aftermarket parts marketed globally under the Hyster and Yale brand names, mainly to independent Hyster and Yale retail dealerships. The Company operates through five segments: the Americas, EMEA, JAPIC, Bolzoni and Nuvera. The Company offers a range of solutions, including attachments and hydrogen fuel cell power products, telematics, automation and fleet management services, as well as an array of other power options for its lift trucks. The Company’s segments for the lift truck business include three management units: the Americas, EMEA and JAPIC. Americas includes operations in the United States, Canada, Mexico, Brazil, Latin America and its corporate headquarters. EMEA includes operations in Europe, the Middle East and Africa. JAPIC includes operations in the Asia and Pacific regions including China.

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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