Reviewing Manitowoc (NYSE:MTW) and Luxfer (NYSE:LXFR)

Luxfer (NYSE:LXFR) and Manitowoc (NYSE:MTW) are both small-cap industrials companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, institutional ownership and risk.

Insider and Institutional Ownership

90.8% of Luxfer shares are owned by institutional investors. Comparatively, 78.7% of Manitowoc shares are owned by institutional investors. 2.0% of Luxfer shares are owned by insiders. Comparatively, 4.0% of Manitowoc shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Luxfer and Manitowoc’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Luxfer	1.71%	11.86%	6.92%
Manitowoc	1.10%	4.75%	1.77%

Volatility & Risk

Luxfer has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500. Comparatively, Manitowoc has a beta of 1.78, suggesting that its share price is 78% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Luxfer and Manitowoc, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Luxfer	1	2	0	1	2.25
Manitowoc	2	1	0	0	1.33

Luxfer currently has a consensus price target of $16.40, indicating a potential downside of 5.39%. Manitowoc has a consensus price target of $17.50, indicating a potential downside of 28.89%. Given Luxfer’s stronger consensus rating and higher probable upside, equities analysts plainly believe Luxfer is more favorable than Manitowoc.

Earnings & Valuation

This table compares Luxfer and Manitowoc”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Luxfer	$384.60 million	1.21	$7.70 million	$0.23	75.37
Manitowoc	$2.24 billion	0.40	$7.20 million	$0.71	34.66

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

Summary

Luxfer beats Manitowoc on 9 of the 14 factors compared between the two stocks.

About Luxfer

Luxfer plc is a global materials technology company that develops and manufactures engineered materials and gas containment products. Its businesses serve customers in markets including healthcare, emergency response, aerospace, defense, transportation and industrial applications. Through its Gas Cylinders division, Luxfer makes high-pressure aluminum and composite cylinders used to store and transport medical and specialty gases, as well as for breathing equipment and alternative-fuel systems. Its Elektron division produces specialty materials, including magnesium alloys and zirconium-based products, for industrial and other applications.

About Manitowoc

The Manitowoc Company, Inc. designs, manufactures and supports lifting equipment for construction and other industries. Its products include mobile hydraulic cranes, crawler cranes, tower cranes and boom trucks, along with replacement parts and aftermarket services. The company sells equipment under brands including Grove, Manitowoc, Potain and National Crane. Its products and services support customers in markets around the world, including the Americas, Europe, the Middle East, Africa and Asia-Pacific.