Head-To-Head Comparison: LiqTech International (NASDAQ:LIQT) versus Columbus McKinnon (NASDAQ:CMCO)

LiqTech International (NASDAQ:LIQT) and Columbus McKinnon (NASDAQ:CMCO) are both small-cap industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, risk, earnings, valuation, analyst recommendations, dividends and institutional ownership.

Profitability

This table compares LiqTech International and Columbus McKinnon’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LiqTech International	-63.18%	-69.03%	-32.37%
Columbus McKinnon	-21.25%	10.02%	2.36%

Risk & Volatility

LiqTech International has a beta of 1.06, indicating that its stock price is 6% more volatile than the S&P 500. Comparatively, Columbus McKinnon has a beta of 1.36, indicating that its stock price is 36% more volatile than the S&P 500.

Insider and Institutional Ownership

35.1% of LiqTech International shares are held by institutional investors. Comparatively, 96.0% of Columbus McKinnon shares are held by institutional investors. 12.8% of LiqTech International shares are held by company insiders. Comparatively, 2.1% of Columbus McKinnon shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares LiqTech International and Columbus McKinnon”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LiqTech International	$16.51 million	1.52	-$8.60 million	($0.84)	-0.91
Columbus McKinnon	$1.49 billion	0.31	-$229.54 million	($7.46)	-2.11

LiqTech International has higher earnings, but lower revenue than Columbus McKinnon. Columbus McKinnon is trading at a lower price-to-earnings ratio than LiqTech International, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current recommendations and price targets for LiqTech International and Columbus McKinnon, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LiqTech International	1	1	1	0	2.00
Columbus McKinnon	1	1	1	2	2.80

LiqTech International currently has a consensus target price of $1.30, suggesting a potential upside of 70.34%. Columbus McKinnon has a consensus target price of $23.00, suggesting a potential upside of 45.94%. Given LiqTech International’s higher possible upside, equities analysts plainly believe LiqTech International is more favorable than Columbus McKinnon.

Summary

Columbus McKinnon beats LiqTech International on 8 of the 14 factors compared between the two stocks.

About LiqTech International

LiqTech International, Inc., a clean technology company, designs, develops, produces, markets, and sells automated filtering systems, ceramic silicon carbide liquid applications, and diesel particulate air filters in the United States, Canada, Europe, Asia, and South America. The company operates through Water, Ceramics, and Plastics segments. It also manufactures and sells silicon carbide ceramic filtration technologies for liquid and gas purification; and diesel particulate filters for exhaust emission control solutions to the verified retrofit and the original equipment manufacturer market. In addition, the company develops, manufactures, and sells liquid filtration systems, which are used for the marine scrubber systems, filtration of produced water, industrial applications, pool and spa water, food and beverage application, and silicon carbide membrane technology. Further, it provides flexible and plastics manufacturing products for machining, welding, bending, and solvent cementing. LiqTech International, Inc. sells its products primarily to industrial customers through direct sales, systems integrators, distributors, agents, and partners. The company was formerly known as Blue Moose Media, Inc. and changed its name to LiqTech International, Inc. in October 2011. LiqTech International, Inc. was founded in 2000 and is headquartered in Ballerup, Denmark.

About Columbus McKinnon

Columbus McKinnon Corporation designs, manufactures, and markets motion solutions for moving, lifting, positioning, and securing materials worldwide. It offers manual, battery, electric, and air hoists; steel, rack, and pinion jacks; winches, hydraulic jacks and tools, trolleys and its clamps, and lifting tables; skates and heavy load moving systems; material handling equipment; mobile, workplace, and jib cranes; crane components and kits; and below-the-hook lifting devices, lifting slings, and lashing systems. The company also provides linear motion products, elevator and mining drives, brakes, radio controls, collision avoidance systems, regenerative drives, AC and DC drive and motor control systems, DC motor and magnet control systems, and conductor bar systems; and underfloor lifting systems, lifting jacks, roof working platforms, hybrid lifting systems, turntables, bogie axle exchange and lifting systems, bogie lift and turn devices, and workshop equipment. In addition, it offers fabric and modular belt, and sanitary, stainless steel conveyors; pallet systems; parts and belts; rotary unions and swivel joints; check valves; accumulation and transfer tables, motion control systems, and steel and flexible chains; hooks, shackles, textile slings, clamps, and load binders; actuators and rotary unions; and push button pendant stations, collision avoidance, and power delivery subsystems. It serves EV production and aerospace, energy and utilities, process industries, industrial automation, construction and infrastructure, food and beverage, entertainment, life sciences, consumer packaged goods, and e-commerce/supply chain/warehousing markets. It offers its products to end users directly, and through distributors, independent crane builders, material handling specialists and integrators, original equipment manufacturers, government agencies, and engineering procurement and construction firms. The company was founded in 1875 and is based in Charlotte, North Carolina.