Lincoln Electric (NASDAQ:LECO) versus Ebang International (NASDAQ:EBON) Financial Contrast

Lincoln Electric (NASDAQ:LECO) and Ebang International (NASDAQ:EBON) are both industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, earnings, risk and analyst recommendations.

Institutional & Insider Ownership

79.6% of Lincoln Electric shares are owned by institutional investors. Comparatively, 1.2% of Ebang International shares are owned by institutional investors. 2.6% of Lincoln Electric shares are owned by company insiders. Comparatively, 25.4% of Ebang International shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations for Lincoln Electric and Ebang International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lincoln Electric	1	1	3	0	2.40
Ebang International	0	0	0	0	0.00

Lincoln Electric presently has a consensus price target of $231.40, indicating a potential downside of 4.35%. Given Lincoln Electric’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Lincoln Electric is more favorable than Ebang International.

Profitability

This table compares Lincoln Electric and Ebang International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lincoln Electric	12.27%	39.79%	14.74%
Ebang International	N/A	N/A	N/A

Earnings & Valuation

This table compares Lincoln Electric and Ebang International”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lincoln Electric	$4.01 billion	3.33	$466.11 million	$8.90	27.18
Ebang International	$5.87 million	N/A	-$20.25 million	N/A	N/A

Lincoln Electric has higher revenue and earnings than Ebang International.

Volatility and Risk

Lincoln Electric has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500. Comparatively, Ebang International has a beta of 1.97, meaning that its share price is 97% more volatile than the S&P 500.

Summary

Lincoln Electric beats Ebang International on 9 of the 11 factors compared between the two stocks.

About Lincoln Electric

Lincoln Electric Holdings, Inc., through its subsidiaries, designs, develops, manufactures, and sells welding, cutting, and brazing products worldwide. The company operates through three segments: Americas Welding, International Welding, and The Harris Products Group. It offers brazing and soldering filler metals, arc welding equipment, plasma and oxyfuel cutting systems, wire feeding systems, fume control equipment, welding accessories, and specialty gas regulators, and education solutions, as well as a portfolio of automated solutions for joining, cutting, material handling, module assembly, and end of line testing, as well as involved in brazing and soldering alloys, and in the retail business in the United States. In addition, the company manufactures copper and aluminum headers, distributor assemblies, and manifolds for the heating, ventilation, and air conditioning sector in the United States and Mexico; provides specialty welding consumables, wear plates and maintenance and repair services for alloy and wear-resistant products used in mining, steel, agricultural, and industrial mill applications; and designs and manufactures robotic assembly and arc welding systems that automate the tacking and welding of steel beams. Further, the company serves general fabrication, oil and gas, power generation, process, automotive and transportation, and construction and infrastructure industries, as well as heavy fabrication, ship building, and maintenance and repair markets. It sells its products directly to users of welding products, as well as through industrial distributors, retailers, and agents. The company was founded in 1895 and is headquartered in Cleveland, Ohio.

About Ebang International

Ebang International Holdings Inc., through its subsidiaries, engages in the research, design, and development of application-specific integrated circuit chips and manufacture of Bitcoin mining machines under the Ebit brand in Singapore, Hong Kong, Australia, the Bahamas, and internationally. It also provides mining machine hosting services; and engages in the development of proprietary cryptocurrency exchange platform. In addition, the company offers fiber-optic communication access devices, including multiprotocol label switching fiber-optic access network devices, multi-service access platform integrated business access devices, and wavelength-division multiplexing fiber-optic devices; and enterprise convergent terminal products, which consists gigabit passive optical network, Fiber to the Room products, passive optical network converged gateways, enterprise cloud gateway devices, industrial Internet of Things access devices, and business enterprise smart wireless access devices. It serves the blockchain and telecommunications industries. The company also operates a cross-border payment and foreign exchange platform. It sells its blockchain products directly, as well as through its website; and telecommunication products under the EBANG brand name primarily through supplier contracts. The company was incorporated in 2018 and is headquartered in Hangzhou, China.