Dover (NYSE:DOV) vs. Art’s-Way Manufacturing (NASDAQ:ARTW) Financial Contrast

Dover (NYSE:DOV) and Art’s-Way Manufacturing (NASDAQ:ARTW) are both industrials companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, dividends, institutional ownership and risk.

Dividends

Dover pays an annual dividend of $2.10 per share and has a dividend yield of 1.1%. Art’s-Way Manufacturing pays an annual dividend of $0.05 per share and has a dividend yield of 1.5%. Dover pays out 25.3% of its earnings in the form of a dividend. Art’s-Way Manufacturing pays out -55.6% 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. Dover has increased its dividend for 70 consecutive years. Art’s-Way Manufacturing is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

84.5% of Dover shares are owned by institutional investors. Comparatively, 2.9% of Art’s-Way Manufacturing shares are owned by institutional investors. 1.1% of Dover shares are owned by insiders. Comparatively, 51.5% of Art’s-Way Manufacturing shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Dover and Art’s-Way Manufacturing, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dover	0	5	11	0	2.69
Art’s-Way Manufacturing	1	0	0	0	1.00

Dover presently has a consensus price target of $237.93, suggesting a potential upside of 22.65%. Given Dover’s stronger consensus rating and higher probable upside, equities analysts plainly believe Dover is more favorable than Art’s-Way Manufacturing.

Risk and Volatility

Dover has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500. Comparatively, Art’s-Way Manufacturing has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500.

Earnings and Valuation

This table compares Dover and Art’s-Way Manufacturing”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dover	$8.42 billion	3.10	$1.09 billion	$8.30	23.37
Art’s-Way Manufacturing	$25.18 million	0.67	$1.03 million	($0.09)	-36.18

Dover has higher revenue and earnings than Art’s-Way Manufacturing. Art’s-Way Manufacturing is trading at a lower price-to-earnings ratio than Dover, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Dover and Art’s-Way Manufacturing’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dover	13.48%	18.32%	10.26%
Art’s-Way Manufacturing	-1.65%	-3.06%	-1.72%

Summary

Dover beats Art’s-Way Manufacturing on 14 of the 17 factors compared between the two stocks.

About Dover

Dover Corporation provides equipment and components, consumable supplies, aftermarket parts, software and digital solutions, and support services worldwide. The company's Engineered Products segment provides various equipment, component, software, solution, and services that are used in vehicle aftermarket, waste handling, industrial automation, aerospace and defense, industrial winch and hoist, and fluid dispensing end-market. This segment offers manual and power clamp, rotary and linear mechanical indexer, conveyor, pick and place unit, glove port, and manipulator, as well as end-of-arm robotic gripper, slide, and end effector; winches, hoists, bearings, drives, and electric monitoring system; and radio frequency and microwave filters and switches, and signal intelligence solutions. Its Clean Energy & Fueling segment offers component, equipment, and software and service solution enabling safe storage and transport of fuel, cryogenic gases, and hazardous fluids, as well as operation of retail fueling and vehicle wash establishment. The company's Imaging & Identification segment provides precision marking and coding, product traceability equipment, brand protection, and digital textile printing equipment and solution, as well as related consumable, software, and service to packaged and consumer goods, pharmaceutical, manufacturing, fashion and apparel, and other end-market. Its Pumps & Process Solutions segment manufactures specialty pump, connector, flow meter, fluid connecting solution, plastics and polymer processing equipment, and engineered components for rotating and reciprocating machines. The company's Climate & Sustainability Technologies segment manufactures refrigeration system, refrigeration display case, commercial glass refrigerator and freezer door, and brazed plate heat exchanger for industrial heating and cooling, and residential climate control applications. The company was incorporated in 1947 and is headquartered in Downers Grove, Illinois.

About Art’s-Way Manufacturing

Art’s-Way Manufacturing Co., Inc. manufactures and distributes farm equipment products. It operates through the Agricultural Products, and Modular Buildings segments. The Agricultural Products segment manufactures a variety of specialized farm machinery under its own label including portable and stationary animal feed processing equipment and related attachments used to mill and mix feed grains into custom animal feed rations, a line of forage equipment consisting of forage boxes, bale processors, running gear, and dump boxes, a line of manure spreaders, sugar beet harvesting equipment, and a line of dirt work equipment. The Modular Buildings segment produces and sells modular buildings, which are custom designed to meet the specific research needs of its customers. It also provides services relating to the design, manufacturing, delivery, installation and renting of the building units that it produces. The company was founded by Arthur Luscombe in 1956 and is headquartered in Armstrong, IA.