Head to Head Review: Kone Oyj (OTCMKTS:KNYJY) vs. Lindsay (NYSE:LNN)

Kone Oyj (OTCMKTS:KNYJY) and Lindsay (NYSE:LNN) are both industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, valuation, profitability, earnings and risk.

Dividends

Kone Oyj pays an annual dividend of $0.45 per share and has a dividend yield of 1.6%. Lindsay pays an annual dividend of $1.52 per share and has a dividend yield of 1.3%. Kone Oyj pays out 42.5% of its earnings in the form of a dividend. Lindsay pays out 29.2% 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.

Earnings and Valuation

This table compares Kone Oyj and Lindsay”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kone Oyj	$12.72 billion	2.05	$1.11 billion	$1.06	27.08
Lindsay	$676.37 million	1.76	$74.05 million	$5.21	22.41

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

Risk & Volatility

Kone Oyj has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500. Comparatively, Lindsay has a beta of 0.7, indicating that its share price is 30% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Kone Oyj and Lindsay, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kone Oyj	3	3	1	1	2.00
Lindsay	1	2	0	0	1.67

Lindsay has a consensus target price of $113.00, suggesting a potential downside of 3.20%. Given Lindsay’s higher probable upside, analysts clearly believe Lindsay is more favorable than Kone Oyj.

Profitability

This table compares Kone Oyj and Lindsay’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kone Oyj	8.33%	38.87%	10.68%
Lindsay	8.79%	10.73%	6.63%

Insider and Institutional Ownership

89.9% of Lindsay shares are held by institutional investors. 1.8% of Lindsay shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Kone Oyj beats Lindsay on 10 of the 18 factors compared between the two stocks.

About Kone Oyj

KONE Oyj, together with its subsidiaries, engages in the elevator and escalator business worldwide. The company provides elevators, escalators, and automatic building doors. It offers maintenance services; and modernization solutions. In addition, the company offers KONE Office Flow, a connected solution that allows for personalized user experiences and touch-free access; health and well-being solutions for elevators, escalators, and doors; KONE Access, an access control system, which is integrated with elevator system and building doors; KONE Destination, a destination control system that reduce waiting and travel times; KONE infotainment, a communication channel for building tenants and visitors; and monitoring solutions that enable real-time inspection of elevators and escalators. Further, it provides people flow planning and consulting services; solutions for special buildings and large projects; cybersecurity solutions; and energy solutions for greener buildings. KONE Oyj was founded in 1908 and is based in Espoo, Finland.

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.