Douglas Dynamics (NYSE: PLOW) and Astec Industries (NASDAQ:ASTE) are both small-cap auto/tires/trucks companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.
Earnings & Valuation
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This table compares Douglas Dynamics and Astec Industries’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Douglas Dynamics||$474.93 million||2.19||$55.32 million||$1.36||33.90|
|Astec Industries||$1.18 billion||1.14||$37.79 million||$1.58||37.08|
Douglas Dynamics has higher earnings, but lower revenue than Astec Industries. Douglas Dynamics is trading at a lower price-to-earnings ratio than Astec Industries, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings and price targets for Douglas Dynamics and Astec Industries, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Douglas Dynamics presently has a consensus price target of $47.00, suggesting a potential upside of 1.95%. Astec Industries has a consensus price target of $66.33, suggesting a potential upside of 13.24%. Given Astec Industries’ stronger consensus rating and higher probable upside, analysts plainly believe Astec Industries is more favorable than Douglas Dynamics.
Risk and Volatility
Douglas Dynamics has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500. Comparatively, Astec Industries has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500.
Douglas Dynamics pays an annual dividend of $1.06 per share and has a dividend yield of 2.3%. Astec Industries pays an annual dividend of $0.40 per share and has a dividend yield of 0.7%. Douglas Dynamics pays out 77.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Astec Industries pays out 25.3% of its earnings in the form of a dividend. Douglas Dynamics has raised its dividend for 5 consecutive years. Douglas Dynamics is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares Douglas Dynamics and Astec Industries’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
89.6% of Douglas Dynamics shares are owned by institutional investors. Comparatively, 89.1% of Astec Industries shares are owned by institutional investors. 3.1% of Douglas Dynamics shares are owned by company insiders. Comparatively, 1.7% of Astec Industries shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Douglas Dynamics beats Astec Industries on 10 of the 17 factors compared between the two stocks.
About Douglas Dynamics
Douglas Dynamics, Inc. operates as a manufacturer and up-fitter of commercial work truck attachments and equipment primarily in North America. It operates in two segments, Work Truck Attachments and Work Truck Solutions. The Work Truck Attachments segment manufactures and sells snow and ice control attachments, including snowplows, and sand and salt spreaders for light and heavy duty trucks, as well as various related parts and accessories. It also provides customized turnkey solutions to governmental agencies, such as departments of transportation and municipalities. This segment offers snow and ice management attachments under the BLIZZARD, FISHER, HENDERSON, SNOWEX, and WESTERN brands; turf care equipment under the TURFEX brand; and industrial maintenance equipment under the SWEEPEX brand. It sells its products to professional snowplowers who are contracted to remove snow and ice from commercial, municipal, and residential areas. The Work Truck Solutions segment provides truck and vehicle up-fits where it attaches component pieces of equipment, truck bodies, racking, and storage solutions to a vehicle chassis for use by end users for work related purposes; and manufactures storage solutions for trucks and vans, and cable pulling equipment for trucks. This segment offers up-fit and storage solutions under the DEJANA brand and its related sub-brands. The company was founded in 2004 and is headquartered in Milwaukee, Wisconsin.
About Astec Industries
Astec Industries, Inc. designs, engineers, manufactures, and markets equipment and components for the road building, aggregate processing, geothermal, water, oil and gas, and wood processing industries in the United States and internationally. The company operates through Infrastructure Group, Aggregate and Mining Group, and Energy Group segments. The Infrastructure Group segment provides hot-mix asphalt plants, wood pellet plants, asphalt pavers, material transfer vehicles, soil stabilizing reclaiming machinery, milling machines, paver screeds, and related ancillary equipment. It serves asphalt producers, highway and heavy equipment contractors, wood pellet processors, and governmental agencies. The Aggregate and Mining Group segment offers jaw and cone crushers, horizontal and vertical shaft impactors, material handling products, roll rock crushers, stationary rockbreaker systems, vibrating feeders and screens, conveyors, inclined products, vertical and horizontal screens, and sand classifying and washing equipment. This segment serves distributors, open mine operators, quarry operators, port and inland terminal operators, highway and heavy equipment contractors, and governmental agencies. The Energy Group segment offers drilling rigs; diesel pump trailers for fracking and cleaning oil and gas wells; concrete plants; commercial and industrial burners; combustion control systems; heating equipment; roofing material and rubber plants; chemical, oil sands, and energy related processing products; heat transfer processing equipment; and thermal fluid storage tanks, waste heat recovery equipment, blower trucks, whole-tree pulpwood and biomass chippers, and horizontal grinders. It serves oil, gas, and water well drilling industry contractors; processors of oil, gas, and biomass for energy production; ready mix concrete producers; and contractors in the construction and demolition recycling markets. The company was founded in 1972 and is based in Chattanooga, Tennessee.