Astec Industries (NASDAQ:ASTE) and Terex (NYSE:TEX) Head to Head Survey

Astec Industries (NASDAQ:ASTE) and Terex (NYSE:TEX) are both industrials companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, analyst recommendations, institutional ownership, risk, earnings, valuation and dividends.

Valuation & Earnings

This table compares Astec Industries and Terex”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Astec Industries	$1.31 billion	0.68	$4.30 million	$0.66	58.92
Terex	$5.13 billion	0.59	$335.00 million	$3.67	12.38

Terex has higher revenue and earnings than Astec Industries. Terex is trading at a lower price-to-earnings ratio than Astec Industries, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations and price targets for Astec Industries and Terex, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Astec Industries	0	1	0	0	2.00
Terex	0	7	4	1	2.50

Astec Industries presently has a consensus price target of $41.00, suggesting a potential upside of 5.43%. Terex has a consensus price target of $50.90, suggesting a potential upside of 11.99%. Given Terex’s stronger consensus rating and higher probable upside, analysts clearly believe Terex is more favorable than Astec Industries.

Dividends

Astec Industries pays an annual dividend of $0.52 per share and has a dividend yield of 1.3%. Terex pays an annual dividend of $0.68 per share and has a dividend yield of 1.5%. Astec Industries pays out 78.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Terex pays out 18.5% of its earnings in the form of a dividend. Terex has raised its dividend for 5 consecutive years. Terex is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

Astec Industries has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500. Comparatively, Terex has a beta of 1.6, meaning that its stock price is 60% more volatile than the S&P 500.

Institutional & Insider Ownership

93.2% of Astec Industries shares are owned by institutional investors. Comparatively, 92.9% of Terex shares are owned by institutional investors. 0.7% of Astec Industries shares are owned by insiders. Comparatively, 1.9% of Terex shares are owned 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 Astec Industries and Terex’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Astec Industries	1.15%	10.72%	6.41%
Terex	4.89%	18.79%	7.32%

Summary

Terex beats Astec Industries on 15 of the 18 factors compared between the two stocks.

About Astec Industries

Astec Industries, Inc. designs, engineers, manufactures, and markets equipment and components used primarily in road building and related construction activities worldwide. The company operates in two segments, Infrastructure Solutions and Materials Solutions. The Infrastructure Solutions segment offers asphalt plants and related components, heaters, concrete dust control systems, asphalt pavers, vaporizers, concrete material handling systems, screeds, heat recovery units, paste back-fill plants, asphalt storage tanks, hot oil heaters, bagging plants, fuel storage tanks, industrial and asphalt burners and systems, custom batch plants, material transfer vehicles, soil stabilizing-reclaiming machinery, blower trucks and trailers, milling machines, soil remediation plants, wood chippers and grinders, pump trailers, concrete batch plants, control systems, liquid terminals, storage equipment and related parts, construction and retrofits, polymer plants, and concrete mixers, as well as engineering and environmental permitting services. This segment provides its products to asphalt producers; highway and heavy equipment contractors; utility contractors; sand and gravel producers; construction, demolition, recycle and crushing contractors; forestry and environmental recycling contractors; mine and quarry operators; port and inland terminal authorities; power stations; and domestic and foreign government agencies. The Materials Solutions segment designs and manufactures crushing equipment, mobile plants, bulk material handling solutions, vibrating equipment, screening equipment, electrical control centers, modular plants and systems, conveying equipment, plant automation products, portable plants, and mineral processing equipment, as well as offers consulting and engineering services. The company was incorporated in 1972 and is headquartered in Chattanooga, Tennessee.

About Terex

Terex Corporation manufactures and sells aerial work platforms and materials processing machinery worldwide. It operates in two segments, Materials Processing (MP) and Aerial Work Platforms (AWP). The MP segment designs, manufactures, services, and markets materials processing and specialty equipment, includes crushers, washing systems, screens, trommels, apron feeders, material handlers, pick and carry cranes, rough terrain cranes, tower cranes, wood processing, biomass and recycling equipment, concrete mixer trucks and concrete pavers, conveyors, and related components and replacement parts under the Terex, Powerscreen, Fuchs, EvoQuip, Canica, Cedarapids, CBI, Simplicity, Franna, Terex Ecotec, Finlay, ProAll, ZenRobotics, Terex Washing Systems, Terex MPS, Terex Jaques, Terex Advance, ProStack, Terex Bid-Well, MDS, and Terex Recycling Systems brands. Its products are used in construction, infrastructure, and recycling projects; quarrying and mining, and material handling applications; maintenance applications to lift equipment or material; and landscaping and biomass production industries. The AWP segment designs, manufactures, services, and markets aerial work platform equipment, utility equipment, and telehandlers under the Terex and Genie brands. Its products include portable material lifts, portable aerial work platforms, trailer-mounted articulating booms, self-propelled articulating and telescopic booms, and scissor lifts, as well as related components and replacement parts for construction and maintenance of industrial, commercial, institutional, and residential buildings and facilities, transmission and distribution lines, construction and foundation drilling applications, and other commercial operations, as well as in tree trimming and various infrastructure projects. The company offers financing solutions to assist customers in the rental, leasing, and acquisition of its products. Terex Corporation was founded in 1933 and is based in Norwalk, Connecticut.