Douglas Dynamics (NYSE: PLOW) and Hyster-Yale Materials Handling (NYSE:HY) are both small-cap auto/tires/trucks companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, earnings, analyst recommendations, dividends, institutional ownership and risk.

Profitability

This table compares Douglas Dynamics and Hyster-Yale Materials Handling’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Douglas Dynamics 6.16% 14.96% 4.82%
Hyster-Yale Materials Handling 2.17% 11.73% 4.33%

Analyst Ratings

This is a summary of recent ratings for Douglas Dynamics and Hyster-Yale Materials Handling, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Douglas Dynamics 0 0 2 0 3.00
Hyster-Yale Materials Handling 0 1 2 0 2.67

Douglas Dynamics presently has a consensus price target of $42.00, suggesting a potential upside of 10.38%. Hyster-Yale Materials Handling has a consensus price target of $74.00, suggesting a potential upside of 1.41%. Given Douglas Dynamics’ stronger consensus rating and higher possible upside, equities analysts clearly believe Douglas Dynamics is more favorable than Hyster-Yale Materials Handling.

Volatility and Risk

Douglas Dynamics has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500. Comparatively, Hyster-Yale Materials Handling has a beta of 1.05, meaning that its stock price is 5% more volatile than the S&P 500.

Valuation & Earnings

This table compares Douglas Dynamics and Hyster-Yale Materials Handling’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Douglas Dynamics $465.33 million 1.85 $86.94 million $1.26 30.20
Hyster-Yale Materials Handling $2.72 billion 0.34 $101.90 million $3.58 20.38

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

Institutional and Insider Ownership

89.3% of Douglas Dynamics shares are owned by institutional investors. Comparatively, 67.4% of Hyster-Yale Materials Handling shares are owned by institutional investors. 3.2% of Douglas Dynamics shares are owned by insiders. Comparatively, 26.3% of Hyster-Yale Materials Handling shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

Douglas Dynamics pays an annual dividend of $0.96 per share and has a dividend yield of 2.5%. Hyster-Yale Materials Handling pays an annual dividend of $1.21 per share and has a dividend yield of 1.7%. Douglas Dynamics pays out 76.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Hyster-Yale Materials Handling pays out 33.8% of its earnings in the form of a dividend. Douglas Dynamics has increased its dividend for 4 consecutive years and Hyster-Yale Materials Handling has increased its dividend for 4 consecutive years.

Summary

Douglas Dynamics beats Hyster-Yale Materials Handling on 10 of the 15 factors compared between the two stocks.

Douglas Dynamics Company Profile

Douglas Dynamics, Inc. is a manufacturer and up-fitter of commercial vehicle attachments and equipment. The Company’s portfolio includes snow and ice management attachments sold under the BLIZZARD, FISHER, HENDERSON, SNOWEX and WESTERN brands, turf care equipment under the TURFEX brand and industrial maintenance equipment under the SWEEPEX brand. The Company operates through two segments: Work Truck Attachments and Work Truck Solutions. The Work Truck Attachments segment includes snow and ice management attachments sold under the FISHER, WESTERN, HENDERSON and SNOWEX brands. The Work Truck Solutions segment includes the up-fit of attachments and storage solutions for commercial work vehicles under the DEJANA brand and its related sub-brands. In its Work Truck Attachments segment, the Company offers a product line of snowplows, and sand and salt spreaders for light and heavy duty trucks. Its Work Truck Solutions products consist of truck and vehicle up-fits.

Hyster-Yale Materials Handling Company Profile

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.

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