Head-To-Head Analysis: CNH Industrial (CNHI) and Columbus McKinnon (CMCO)

CNH Industrial (NYSE: CNHI) and Columbus McKinnon (NASDAQ:CMCO) are both auto/tires/trucks companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, earnings, profitability, dividends, risk, analyst recommendations and institutional ownership.

Profitability

This table compares CNH Industrial and Columbus McKinnon’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CNH Industrial 1.08% 14.58% 1.38%
Columbus McKinnon 1.10% 11.87% 3.88%

Institutional & Insider Ownership

21.3% of CNH Industrial shares are held by institutional investors. Comparatively, 86.0% of Columbus McKinnon shares are held by institutional investors. 3.9% of Columbus McKinnon shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Dividends

CNH Industrial pays an annual dividend of $0.12 per share and has a dividend yield of 1.0%. Columbus McKinnon pays an annual dividend of $0.16 per share and has a dividend yield of 0.5%. CNH Industrial pays out 25.0% of its earnings in the form of a dividend. Columbus McKinnon pays out 12.1% 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.

Valuation & Earnings

This table compares CNH Industrial and Columbus McKinnon’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CNH Industrial $27.36 billion 0.60 $295.00 million $0.48 25.23
Columbus McKinnon $637.12 million 1.26 $8.98 million $1.32 26.42

CNH Industrial has higher revenue and earnings than Columbus McKinnon. CNH Industrial is trading at a lower price-to-earnings ratio than Columbus McKinnon, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

CNH Industrial has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500. Comparatively, Columbus McKinnon has a beta of 1.84, indicating that its stock price is 84% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for CNH Industrial and Columbus McKinnon, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CNH Industrial 0 4 6 0 2.60
Columbus McKinnon 0 0 2 0 3.00

CNH Industrial currently has a consensus target price of $14.72, suggesting a potential upside of 21.57%. Columbus McKinnon has a consensus target price of $50.00, suggesting a potential upside of 43.39%. Given Columbus McKinnon’s stronger consensus rating and higher possible upside, analysts plainly believe Columbus McKinnon is more favorable than CNH Industrial.

Summary

Columbus McKinnon beats CNH Industrial on 11 of the 16 factors compared between the two stocks.

CNH Industrial Company Profile

CNH Industrial N.V. is a capital goods company. The Company is engaged in the design, production, marketing, sale and financing of agricultural and construction equipment, trucks, commercial vehicles, buses and specialty vehicles for firefighting, defense and other uses, as well as engines, transmissions and axles for vehicles and engines under marine and power generation applications. Its segments include Agricultural Equipment, which designs, manufactures and distributes farm machinery and implements; Construction Equipment, which designs, manufactures and distributes construction equipment; Commercial Vehicles, which designs, produces and sells a range of light, medium and heavy vehicles for the transportation and distribution of goods; Powertrain, which designs, manufactures and offers a range of propulsion and transmission systems, and axles for on- and off-road applications, and Financial Services, which offers a range of financial services to dealers and customers.

Columbus McKinnon Company Profile

Columbus McKinnon Corporation is a global designer, manufacturer and marketer of hoists, actuators, cranes, rigging tools, digital power control systems, and other material handling products serving various commercial and industrial end user markets. The Company’s products include various electric, air-powered, lever, and hand hoists, hoist trolleys, winches, industrial crane systems, such as steel bridge, gantry and jib cranes and aluminum work station cranes; alloy and carbon steel chain; forged attachments, such as hooks, shackles, textile slings, clamps, logging tools and load binders; mechanical and electromechanical actuators and rotary unions; below-the-hook special purpose lifters and tire shredders; power and motion control systems, such as alternate current (AC) and direct current (DC) drive systems, radio remote controls, push button pendant stations, brakes, and collision avoidance and power delivery subsystems.

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