Wacker Neuson (OTCMKTS:WKRCF) and Columbus McKinnon (NASDAQ:CMCO) Critical Survey

Columbus McKinnon (NASDAQ:CMCO) and Wacker Neuson (OTCMKTS:WKRCF) are both industrials companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, earnings, profitability, valuation, analyst recommendations and institutional ownership.

Dividends

Columbus McKinnon pays an annual dividend of $0.28 per share and has a dividend yield of 0.9%. Wacker Neuson pays an annual dividend of $0.40 per share and has a dividend yield of 2.6%. Columbus McKinnon pays out 17.3% of its earnings in the form of a dividend. Wacker Neuson pays out 31.8% 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 and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Columbus McKinnon	$1.02 billion	0.92	$46.62 million	$1.62	19.93
Wacker Neuson	N/A	N/A	N/A	$1.26	12.07

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Columbus McKinnon	4.52%	9.50%	4.56%
Wacker Neuson	N/A	N/A	N/A

Institutional & Insider Ownership

96.0% of Columbus McKinnon shares are owned by institutional investors. Comparatively, 7.2% of Wacker Neuson shares are owned by institutional investors. 2.0% of Columbus McKinnon shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Columbus McKinnon and Wacker Neuson, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Columbus McKinnon	0	0	2	0	3.00
Wacker Neuson	0	0	0	0	N/A

Columbus McKinnon currently has a consensus price target of $51.50, suggesting a potential upside of 59.54%. Given Columbus McKinnon’s higher probable upside, equities analysts plainly believe Columbus McKinnon is more favorable than Wacker Neuson.

Summary

Columbus McKinnon beats Wacker Neuson on 11 of the 12 factors compared between the two stocks.

About Columbus McKinnon

Columbus McKinnon Corporation designs, manufactures, and markets motion solutions for moving, lifting, positioning, and securing materials worldwide. It offers manual, battery, electric, and air hoists; steel, rack, and pinion jacks; winches, hydraulic jacks and tools, trolleys and its clamps, and lifting tables; skates and heavy load moving systems; material handling equipment; mobile, workplace, and jib cranes; crane components and kits; and below-the-hook lifting devices, lifting slings, and lashing systems. The company also provides linear motion products, elevator and mining drives, brakes, radio controls, collision avoidance systems, regenerative drives, AC and DC drive and motor control systems, DC motor and magnet control systems, and conductor bar systems; and underfloor lifting systems, lifting jacks, roof working platforms, hybrid lifting systems, turntables, bogie axle exchange and lifting systems, bogie lift and turn devices, and workshop equipment. In addition, it offers fabric and modular belt, and sanitary, stainless steel conveyors; pallet systems; parts and belts; rotary unions and swivel joints; check valves; accumulation and transfer tables, motion control systems, and steel and flexible chains; hooks, shackles, textile slings, clamps, and load binders; actuators and rotary unions; and push button pendant stations, collision avoidance, and power delivery subsystems. It serves EV production and aerospace, energy and utilities, process industries, industrial automation, construction and infrastructure, food and beverage, entertainment, life sciences, consumer packaged goods, and e-commerce/supply chain/warehousing markets. It offers its products to end users directly, and through distributors, independent crane builders, material handling specialists and integrators, original equipment manufacturers, government agencies, and engineering procurement and construction firms. The company was founded in 1875 and is based in Charlotte, North Carolina.

About Wacker Neuson

Wacker Neuson SE manufactures and distributes light and compact equipment in Germany, Austria, the United States, and internationally. It operates through three segments: Light Equipment, Compact Equipment, and Services. The company provides internal and external vibrators for concrete compaction; rammers; vibratory plates; rollers for soil compaction; demolition and light products; generators; pumps; and heaters. It also offers compact equipment, including excavators, wheel loaders, telescopic wheel loaders, skid steer loaders, telehandlers, wheel and track dumpers, and backhoe loaders, as well as related product attachments and accessories. In addition, the company provides repair and maintenance services; spare parts; used equipment, financing, telematics, training, e-business, and rental solutions; digital service solutions; and sells third-party equipment, including resale of trade-ins. It distributes its products and services under the Wacker Neuson, Kramer, Weidemann, Enar, Battery One, and SEQUELLO brand names. The company serves construction, gardening and landscaping, agricultural, municipal, recycling, rail transport, and manufacturing industries. Wacker Neuson SE was founded in 1848 and is headquartered in Munich, Germany.