Critical Review: Lonking (LONKF) and Columbus McKinnon (CMCO)

Lonking (OTCMKTS:LONKF) and Columbus McKinnon (NASDAQ:CMCO) are both small-cap industrial products companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.

Institutional and Insider Ownership

97.7% of Columbus McKinnon shares are held by institutional investors. 2.3% of Columbus McKinnon shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.



Profitability

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

Net Margins Return on Equity Return on Assets
Lonking N/A N/A N/A
Columbus McKinnon 2.49% 13.88% 5.03%

Earnings & Valuation

This table compares Lonking and Columbus McKinnon’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Lonking $1.33 billion 0.96 $154.75 million N/A N/A
Columbus McKinnon $839.42 million 0.92 $22.06 million $2.01 16.50

Lonking has higher revenue and earnings than Columbus McKinnon.

Dividends

Columbus McKinnon pays an annual dividend of $0.20 per share and has a dividend yield of 0.6%. Lonking does not pay a dividend. Columbus McKinnon pays out 10.0% of its earnings in the form of a dividend.

Volatility and Risk

Lonking has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&P 500. Comparatively, Columbus McKinnon has a beta of 1.73, suggesting that its stock price is 73% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for Lonking and Columbus McKinnon, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lonking 0 0 0 0 N/A
Columbus McKinnon 0 0 3 0 3.00

Columbus McKinnon has a consensus price target of $51.33, suggesting a potential upside of 54.80%. Given Columbus McKinnon’s higher possible upside, analysts clearly believe Columbus McKinnon is more favorable than Lonking.

Summary

Columbus McKinnon beats Lonking on 9 of the 13 factors compared between the two stocks.

About Lonking

Lonking Holdings Limited, an investment holding company, manufactures and distributes wheel loaders, road rollers, excavators, forklifts, and other construction machinery in Mainland China. The company’s products also include hydraulic excavators, skid steer loaders, motor graders, bulldozers, and stackers. It also develops and produces components, including gearboxes, torque converters, axles, hydraulic components, gear pipes and driver shaft, and other products; and provides loader, excavator, forklift, road machinery, warehouse, and other parts, as well as maintenance and support services. In addition, the company offers finance leasing for construction machinery. Further, it distributes wheel loaders and other machinery; and trades in construction machinery and components. Lonking Holdings Limited was founded in 1993 and is headquartered in Shanghai, the People’s Republic of China.

About Columbus McKinnon

Columbus McKinnon Corporation designs, manufactures, and markets hoists, actuators, cranes, rigging tools, digital power control systems, and other material handling products for commercial and industrial applications worldwide. It offers various electric chain hoists, electric wire rope hoists, hand-operated hoists, winches, lever tools, and air-powered hoists under the Budgit, Chester, CM, Coffing, Little Mule, Pfaff, Shaw-Box, Yale, STAHL, and other brands; below-the-hook tooling, clamps, and textile strappings; and explosion-protected hoists, as well as supplies hoist trolleys. The company also provides alloy and carbon steel chains; alloy chains under the Herc-Alloy brand; load chains and carbon steel welded-link chains; alloy and carbon steel closed-die forged chain attachments, including hooks, shackles, Hammerloks, and master links; and carbon steel forged and stamped products, such as load binders, logging tools, and other securing devices. In addition, it offers power and motion control systems, which comprise AC and DC drive systems, radio remote controls, push button pendant stations, brakes, collision avoidance, and power delivery subsystems, as well as AC and DC digital motion control systems for underground coal mining equipment; industrial components, including mechanical and electromechanical actuators and rotary unions; and overhead steel jib and gantry cranes, and overhead aluminum light rail workstations under the CES, Abell-Howe, and Washington Equipment brands. Further, the company provides DC high-performance elevator drives, AC drives, and regenerative controls; and tire shredders. The company sells its products through its sales force and independent distributors. Columbus McKinnon Corporation was founded in 1875 and is headquartered in Getzville, New York.

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