Critical Comparison: Indoor Harvest (OTCMKTS:INQD) & Alamo Group (NYSE:ALG)

Indoor Harvest (OTCMKTS:INQD) and Alamo Group (NYSE:ALG) are both industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, profitability, risk, institutional ownership and analyst recommendations.

Institutional and Insider Ownership

92.4% of Alamo Group shares are owned by institutional investors. 0.1% of Indoor Harvest shares are owned by insiders. Comparatively, 1.2% of Alamo Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Indoor Harvest and Alamo Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Indoor Harvest	N/A	N/A	N/A
Alamo Group	7.25%	11.56%	7.92%

Valuation and Earnings

This table compares Indoor Harvest and Alamo Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Indoor Harvest	N/A	N/A	-$3.26 million	N/A	N/A
Alamo Group	$1.63 billion	1.68	$115.93 million	$9.60	23.52

Alamo Group has higher revenue and earnings than Indoor Harvest.

Risk and Volatility

Indoor Harvest has a beta of -2.05, suggesting that its stock price is 305% less volatile than the S&P 500. Comparatively, Alamo Group has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for Indoor Harvest and Alamo Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Indoor Harvest	0	0	0	0	0.00
Alamo Group	0	2	1	0	2.33

Alamo Group has a consensus target price of $196.33, indicating a potential downside of 13.06%. Given Alamo Group’s stronger consensus rating and higher probable upside, analysts clearly believe Alamo Group is more favorable than Indoor Harvest.

Summary

Alamo Group beats Indoor Harvest on 11 of the 11 factors compared between the two stocks.

About Indoor Harvest

Indoor Harvest Corp. focuses on operating an integrated consolidation platform for hemp, other hemp-related products, CBD, and other plant-based companies. Indoor Harvest Corp. was founded in 2011 and is based in Austin, Texas.

About Alamo Group

Alamo Group Inc. designs, manufactures, distributes, and services vegetation management and infrastructure maintenance equipment for governmental, industrial, and agricultural uses worldwide. It operates through two segments, Vegetation Management and Industrial Equipment. Its Vegetation Management Division segment offers hydraulically-powered and tractor – and off-road chassis mounted mowers, other cutters and replacement parts for heavy-duty and intensive uses and heavy duty, tractor- and truck-mounted mowing and vegetation maintenance equipment, and replacement parts. This segment also provides rotary and finishing mowers, flail and disc mowers, front-end loaders, backhoes, rotary tillers, posthole diggers, scraper blades and replacement parts, zero turn radius mowers, cutting parts, plain and hard-faced replacement tillage tools, disc blades, and fertilizer application components; aftermarket agricultural parts, heavy-duty mechanical rotary mowers, snow blowers, rock removal equipment, tractor attachments, agricultural implements, hydraulic and boom-mounted hedge and grass cutters, hedgerow cutters, industrial grass mowers, agricultural seedbed preparation cultivators, self-propelled sprayers and multi-drive load-carrying vehicles, and cutting blades. The company's Industrial Equipment Division segment offers truck-mounted air vacuum, mechanical broom, and regenerative air sweepers, pothole patchers, leaf collection equipment and replacement brooms, parking lot and street sweepers, excavators, catch basin cleaners, and roadway debris vacuum systems, as well as truck-mounted vacuum machines, combination sewer cleaners, and hydro excavators. This segment also offers ice control products, snowplows and heavy duty snow removal equipment, hitches, attachments, and graders; and public works and runway maintenance products, parts, and services, and high pressure cleaning systems and trenchers. The company was founded in 1955 and is headquartered in Seguin, Texas.