Financial Review: Hitachi Constr (OTCMKTS:HTCMY) and Manitowoc (NYSE:MTW)

Manitowoc (NYSE:MTW) and Hitachi Constr (OTCMKTS:HTCMY) are both industrials companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, risk, valuation, profitability, analyst recommendations, institutional ownership and dividends.

Valuation & Earnings

This table compares Manitowoc and Hitachi Constr”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Manitowoc	$2.18 billion	0.20	$55.80 million	$1.25	9.85
Hitachi Constr	$9.01 billion	0.70	$537.42 million	$5.45	10.92

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

Profitability

This table compares Manitowoc and Hitachi Constr’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Manitowoc	2.09%	0.63%	0.22%
Hitachi Constr	N/A	N/A	N/A

Institutional & Insider Ownership

78.7% of Manitowoc shares are owned by institutional investors. 2.5% of Manitowoc shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

Manitowoc has a beta of 2.03, suggesting that its stock price is 103% more volatile than the S&P 500. Comparatively, Hitachi Constr has a beta of 0.37, suggesting that its stock price is 63% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Manitowoc and Hitachi Constr, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Manitowoc	2	3	0	0	1.60
Hitachi Constr	0	0	0	0	0.00

Manitowoc presently has a consensus target price of $10.86, suggesting a potential downside of 11.78%. Given Manitowoc’s stronger consensus rating and higher possible upside, research analysts plainly believe Manitowoc is more favorable than Hitachi Constr.

Summary

Manitowoc beats Hitachi Constr on 8 of the 13 factors compared between the two stocks.

About Manitowoc

The Manitowoc Company, Inc. provides engineered lifting solutions in the Americas, Europe, Africa, the Middle East, the Asia Pacific, and internationally. It designs, manufactures, and distributes crawler-mounted lattice-boom cranes under the Manitowoc brand; a line of top-slewing and self-erecting tower cranes under the Potain brand; mobile hydraulic cranes under the Grove, Shuttlelift, and National Crane brands; and hydraulic boom trucks under the National Crane brand. The company also provides aftermarket services, such as sale of parts and accessories, field service work, routine maintenance services, technical support, erection and decommissioning services, crane and component remanufacturing, training, and telematics services. Its crane products are used in various applications, including energy production/distribution and utilities; petrochemical and industrial; infrastructure, such as road, bridge, and airport construction; and commercial and residential construction. The company serves a range of customers, including dealers, rental companies, contractors, and government entities in the petrochemical, industrial, commercial construction, power and utilities, infrastructure, and residential construction end markets. The Manitowoc Company, Inc. was founded in 1902 and is headquartered in Milwaukee, Wisconsin.

About Hitachi Constr

Hitachi Construction Machinery Co., Ltd., together with its subsidiaries, manufactures and sells construction machineries worldwide. The company operates through two segments, Construction Machinery Business and Solution Business. It offers excavators and wheel loaders, hydraulic excavators, compaction equipment, and rigid dump trucks. The company also provides ICT construction solutions; ConSite that monitors machines' operational status and alarms by sending monthly operational reports, as well as notifies emergency alarms; Fleet management system, which offers real-time monitoring of dump truck for optimizing vehicle operations; and autonomous haulage system for autonomous operation of mining dump trucks. In addition, it provides parts and services; used equipment under the PREMIUM USED brand; machinery rental services under the PREMIUM RENTAL and REC brand names; and parts remanufacturing services. The company was incorporated in 1951 and is headquartered in Taito, Japan. Hitachi Construction Machinery Co., Ltd. is a subsidiary of Hitachi, Ltd.