Comparing Lindsay (NYSE:LNN) and Aebi Schmidt (NASDAQ:AEBI)

Lindsay (NYSE:LNN) and Aebi Schmidt (NASDAQ:AEBI) are both small-cap industrials companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, dividends, institutional ownership, analyst recommendations, earnings and profitability.

Earnings & Valuation

This table compares Lindsay and Aebi Schmidt”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lindsay	$627.86 million	1.88	$74.05 million	$5.21	22.25
Aebi Schmidt	$1.53 billion	0.59	$9.74 million	$0.32	36.25

Lindsay has higher earnings, but lower revenue than Aebi Schmidt. Lindsay is trading at a lower price-to-earnings ratio than Aebi Schmidt, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Lindsay and Aebi Schmidt’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lindsay	8.79%	10.73%	6.63%
Aebi Schmidt	1.09%	2.59%	1.04%

Risk and Volatility

Lindsay has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500. Comparatively, Aebi Schmidt has a beta of 2.43, indicating that its stock price is 143% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Lindsay and Aebi Schmidt, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lindsay	1	2	0	0	1.67
Aebi Schmidt	0	1	2	0	2.67

Lindsay presently has a consensus target price of $113.00, indicating a potential downside of 2.52%. Aebi Schmidt has a consensus target price of $17.00, indicating a potential upside of 46.55%. Given Aebi Schmidt’s stronger consensus rating and higher probable upside, analysts clearly believe Aebi Schmidt is more favorable than Lindsay.

Dividends

Lindsay pays an annual dividend of $1.52 per share and has a dividend yield of 1.3%. Aebi Schmidt pays an annual dividend of $0.10 per share and has a dividend yield of 0.9%. Lindsay pays out 29.2% of its earnings in the form of a dividend. Aebi Schmidt pays out 31.2% 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. Lindsay has increased its dividend for 22 consecutive years. Lindsay is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

89.9% of Lindsay shares are owned by institutional investors. 1.8% of Lindsay shares are owned by insiders. Comparatively, 39.1% of Aebi Schmidt 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.

Summary

Lindsay beats Aebi Schmidt on 10 of the 17 factors compared between the two stocks.

About Lindsay

Lindsay Corporation, together with its subsidiaries, provides water management and road infrastructure products and services in the United States and internationally. It operates in two segments, Irrigation and Infrastructure. The Irrigation segment manufactures and markets center pivot, lateral move irrigation systems, and irrigation controls under the Zimmatic brand; hose reel travelers under the Perrot brand; and chemical injection systems, variable rate irrigation systems, flow meters, weather stations, soil moisture sensors, and remote monitoring and control systems. It also offers repair and replacement parts for its irrigation systems and controls, and diameter steel tubing; global positioning system positioning and guidance, variable rate irrigation, wireless irrigation management, irrigation scheduling, and smartphone applications; and industrial Internet of Things technology solutions, data acquisition and management systems, and custom electronic equipment for applications under the Elecsys brand. The Infrastructure segment provides Road Zipper System comprised of T-shaped concrete and steel barriers, barrier transfer machine, and variable length barriers which are used for highway reconstruction, paving and resurfacing, road widening, median and shoulder construction, and repairs to tunnels and bridges. Additionally, it offers redirective and non-redirective crash cushions to enhance highway safety at locations such as toll booths, freeway off-ramps, medians and roadside barrier ends, bridge supports, utility poles, and other fixed roadway hazards; specialty barriers; preformed tape and road safety accessory products, as well as rail products, such as signals and lights, structures, foundations, junction boxes, and signs. Lindsay Corporation was founded in 1955 and is headquartered in Omaha, Nebraska.

About Aebi Schmidt

Aebi Schmidt Holding AG is a provider of mission-critical infrastructure, environmental and agricultural solutions. Aebi Schmidt Holding AG, formerly known as The Shyft Group Inc., is based in NOVI, Mich.