Critical Contrast: Columbus McKinnon (NASDAQ:CMCO) versus Paragon Technologies (OTCMKTS:PGNT)

Paragon Technologies (OTCMKTS:PGNT) and Columbus McKinnon (NASDAQ:CMCO) are both small-cap industrials companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, dividends, earnings, profitability and risk.

Earnings and Valuation

This table compares Paragon Technologies and Columbus McKinnon”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Paragon Technologies	$126.47 million	0.11	$1.12 million	($0.33)	-25.00
Columbus McKinnon	$963.03 million	0.46	-$5.14 million	($0.17)	-90.76

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Paragon Technologies	N/A	N/A	N/A
Columbus McKinnon	-0.53%	8.13%	4.10%

Volatility and Risk

Paragon Technologies has a beta of 0.67, meaning that its share price is 33% less volatile than the S&P 500. Comparatively, Columbus McKinnon has a beta of 1.28, meaning that its share price is 28% more volatile than the S&P 500.

Institutional & Insider Ownership

96.0% of Columbus McKinnon shares are held by institutional investors. 6.1% of Paragon Technologies shares are held by company insiders. Comparatively, 2.0% of Columbus McKinnon shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations for Paragon Technologies and Columbus McKinnon, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Paragon Technologies	0	0	0	0	0.00
Columbus McKinnon	0	1	0	0	2.00

Columbus McKinnon has a consensus price target of $35.00, suggesting a potential upside of 126.83%. Given Columbus McKinnon’s stronger consensus rating and higher probable upside, analysts clearly believe Columbus McKinnon is more favorable than Paragon Technologies.

Summary

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

About Paragon Technologies

Paragon Technologies, Inc., together with its subsidiaries, engages in the automation, distribution, and real estate activities in North America, Latin America, Europe, and Asia. It offers various systems, software and services, including complete order fulfillment, assembly, product advancing systems, productivity, production and order fulfillment accuracy, and safety enhancements for automated material handling and order processing applications to distribution centers, manufacturers, and warehouses. The company provides towline conveyance used in heavy industrial products manufacturing and warehouses; and technologies composing patented A-Frame and Mobile-Matic robotic picking system. In addition, the company distributes servers, workstations, storage, networking, and audio-visual products, and power protection systems; notebook and desktop computers, printers, projectors, gaming products, and accessories; consumer electronics and home appliances; and offers managed services, printing, electronic documents management, and electronic invoicing, as well as high-capacity storage solutions to businesses. Further, it acquires, invests in, and manages residential real estate; and invests in businesses and marketable securities under the investment management policy. The company was formerly known as SI Handling Systems, Inc. and changed its name to Paragon Technologies, Inc. in April 2000. Paragon Technologies, Inc. was incorporated in 1958 and is headquartered in Easton, Pennsylvania.

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.