puraDYN Filter Technologies (OTCMKTS:PFTI) & Douglas Dynamics (NYSE:PLOW) Critical Review

puraDYN Filter Technologies (OTCMKTS:PFTI) and Douglas Dynamics (NYSE:PLOW) are both auto/tires/trucks companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, risk, institutional ownership and dividends.

Insider and Institutional Ownership

91.9% of Douglas Dynamics shares are owned by institutional investors. 37.3% of puraDYN Filter Technologies shares are owned by company insiders. Comparatively, 2.5% of Douglas Dynamics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

puraDYN Filter Technologies has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500. Comparatively, Douglas Dynamics has a beta of 1.29, meaning that its share price is 29% more volatile than the S&P 500.

Profitability

This table compares puraDYN Filter Technologies and Douglas Dynamics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
puraDYN Filter Technologies	N/A	N/A	N/A
Douglas Dynamics	11.00%	15.17%	6.21%

Analyst Ratings

This is a summary of recent ratings and price targets for puraDYN Filter Technologies and Douglas Dynamics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
puraDYN Filter Technologies	0	0	0	0	0.00
Douglas Dynamics	0	1	1	0	2.50

Douglas Dynamics has a consensus target price of $29.00, indicating a potential upside of 1.85%. Given Douglas Dynamics’ stronger consensus rating and higher probable upside, analysts plainly believe Douglas Dynamics is more favorable than puraDYN Filter Technologies.

Valuation & Earnings

This table compares puraDYN Filter Technologies and Douglas Dynamics”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
puraDYN Filter Technologies	N/A	N/A	N/A	N/A	N/A
Douglas Dynamics	$568.50 million	1.16	$56.15 million	$2.72	10.47

Douglas Dynamics has higher revenue and earnings than puraDYN Filter Technologies.

Summary

Douglas Dynamics beats puraDYN Filter Technologies on 9 of the 10 factors compared between the two stocks.

About puraDYN Filter Technologies

Puradyn Filter Technologies, Inc. designs, manufactures, markets, and distributes bypass oil filtration systems for use with internal combustion engines and hydraulic equipment that use lubricating oil worldwide. The company offers its products under the Puradyn brand name. Its Puradyn system cleans oil by providing a second circuit of oil filtration and treatment to continually remove solid and liquid contaminants from the oil through a filtration and absorption process. The company also manufactures replacement filter elements for the Puradyn system. Its products are marketed to various industries that include hydraulic applications, and other users of engines or equipment that utilize up to 50 weight oil for lubrication. The company sells its products directly, as well as through manufacturer's representatives, distributors, or other agents to OEMs, other distributors, and national accounts. It serves oil and gas services, power generation, construction and forestry, commercial marine, mining, and transportation industries. The company was founded in 1987 and is based in Boynton Beach, Florida.

About Douglas Dynamics

Douglas Dynamics, Inc. operates as a manufacturer and upfitter of commercial work truck attachments and equipment in North America. It operates through two segments, Work Truck Attachments and Work Truck Solutions. The Work Truck Attachments segment manufactures and sells snow and ice control attachments, including snowplows, and sand and salt spreaders for light trucks and heavy duty trucks, as well as various related parts and accessories. The Work Truck Solutions segment primarily manufactures municipal snow and ice control products; provides truck and vehicle upfits where it attaches component pieces of equipment, truck bodies, racking, and storage solutions to a vehicle chassis for use by end users for work related purposes; and manufactures storage solutions for trucks and vans, and cable pulling equipment for trucks. This segment also offers up-fit and storage solutions. It also provides customized turnkey solutions to governmental agencies, such as Departments of Transportation and municipalities. The company sells its products under the FISHER, SNOWEX, WESTERN, TURFEX, SWEEPEX, HENDERSON, BRINEXTREME, and DEJANA brands. It distributes its products primarily to professional snowplowers who are contracted to remove snow and ice from commercial and residential areas. The company was founded in 1948 and is headquartered in Milwaukee, Wisconsin.