Head-To-Head Survey: Kubota (OTCMKTS:KUBTY) versus Lindsay (NYSE:LNN)

Kubota (OTCMKTS:KUBTY) and Lindsay (NYSE:LNN) are both industrials companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitability, risk and dividends.

Earnings and Valuation

This table compares Kubota and Lindsay”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kubota	$19.95 billion	0.63	$1.52 billion	$5.62	9.67
Lindsay	$607.07 million	2.43	$66.26 million	$6.96	19.51

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

Risk & Volatility

Kubota has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500. Comparatively, Lindsay has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500.

Insider and Institutional Ownership

0.4% of Kubota shares are owned by institutional investors. Comparatively, 89.9% of Lindsay shares are owned by institutional investors. 0.0% of Kubota shares are owned by insiders. Comparatively, 1.7% of Lindsay shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Kubota and Lindsay’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kubota	6.71%	7.35%	3.36%
Lindsay	11.21%	15.09%	9.54%

Dividends

Kubota pays an annual dividend of $1.23 per share and has a dividend yield of 2.3%. Lindsay pays an annual dividend of $1.44 per share and has a dividend yield of 1.1%. Kubota pays out 21.9% of its earnings in the form of a dividend. Lindsay pays out 20.7% 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. Lindsay has raised its dividend for 22 consecutive years.

Analyst Recommendations

This is a breakdown of recent recommendations for Kubota and Lindsay, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kubota	0	2	0	0	2.00
Lindsay	0	1	0	0	2.00

Lindsay has a consensus target price of $136.00, suggesting a potential upside of 0.14%. Given Lindsay’s higher possible upside, analysts clearly believe Lindsay is more favorable than Kubota.

Summary

Lindsay beats Kubota on 11 of the 15 factors compared between the two stocks.

About Kubota

Kubota Corporation manufactures and sells agricultural and construction machinery in Japan, North America, Europe, Asia, and internationally. It operates through three segments: Farm & Machinery, Water & Environment, and Others. The Farm & Machinery segment offers tractors, power tillers, combine harvesters, rice transplanters, turf equipment, utility vehicles, other agricultural machinery, implements, attachments, post-harvest machinery, vegetable production equipment, intermediate management machine, and other equipment; cooperative drying, rice seedling, and gardening facilities; scales, weighing and measuring control systems, and air purifier; engines for farm equipment, construction machinery, industrial machinery, and generators; and mini excavators, wheel and skid steer loaders, compact track loaders, and other construction machinery related products. Its Water & Environment segment provides ductile iron pipes, synthetic pipes, valves, and single stack drain fittings, as well as design and construction services; reformer and cracking tubes, hearth rolls, TXAX materials, and spiral steel pipes; air-conditioning equipment; wastewater treatment equipment and plants, pumps and pump plants, membrane solutions, wastewater purification plants, night-soil treatment plants, waste incinerating and meltingplants, waste shredding and sorting plants, flue gas desulfurization apparatus, membrane methane fermentation plants, wastewater treatment plant, and valves. The Others segment offers logistics services; and roofing and exterior wall materials. It also engages in the underwriting of non-life insurance, retail financing, finance leasing, maintenance, security guarding, and facility management services; and import and export of components for farm equipment, engines, and construction machinery. It serves customers through a network of dealers. Kubota Corporation was founded in 1890 and is headquartered in Osaka, Japan.

About Lindsay

Lindsay Corporation, together with its subsidiaries, provides water management and road infrastructure products and services in the United States and internationally. It operates in two segments, Irrigation and Infrastructure. The Irrigation segment manufactures and markets center pivot, lateral move irrigation systems, and irrigation controls under the Zimmatic brand; hose reel travelers under the Perrot brand; and chemical injection systems, variable rate irrigation systems, flow meters, weather stations, soil moisture sensors, and remote monitoring and control systems. It also offers repair and replacement parts for its irrigation systems and controls, and diameter steel tubing; global positioning system positioning and guidance, variable rate irrigation, wireless irrigation management, irrigation scheduling, and smartphone applications; and industrial Internet of Things technology solutions, data acquisition and management systems, and custom electronic equipment for applications under the Elecsys brand. The Infrastructure segment provides Road Zipper System comprised of T-shaped concrete and steel barriers, barrier transfer machine, and variable length barriers which are used for highway reconstruction, paving and resurfacing, road widening, median and shoulder construction, and repairs to tunnels and bridges. Additionally, it offers redirective and non-redirective crash cushions to enhance highway safety at locations such as toll booths, freeway off-ramps, medians and roadside barrier ends, bridge supports, utility poles, and other fixed roadway hazards; specialty barriers; preformed tape and road safety accessory products, as well as rail products, such as signals and lights, structures, foundations, junction boxes, and signs. Lindsay Corporation was founded in 1955 and is headquartered in Omaha, Nebraska.