Hyster-Yale (NYSE:HY) & Hitachi Constr (OTCMKTS:HTCMY) Critical Comparison

Hitachi Constr (OTCMKTS:HTCMY) and Hyster-Yale (NYSE:HY) are both industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.

Volatility and Risk

Hitachi Constr has a beta of 0.33, suggesting that its stock price is 67% less volatile than the S&P 500. Comparatively, Hyster-Yale has a beta of 1.53, suggesting that its stock price is 53% more volatile than the S&P 500.

Earnings and Valuation

This table compares Hitachi Constr and Hyster-Yale”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hitachi Constr	$9.01 billion	0.75	$537.42 million	$5.45	11.70
Hyster-Yale	$4.31 billion	0.15	$142.30 million	$1.24	29.33

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

Insider and Institutional Ownership

46.5% of Hyster-Yale shares are held by institutional investors. 34.5% of Hyster-Yale shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and recommmendations for Hitachi Constr and Hyster-Yale, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hitachi Constr	0	0	0	0	0.00
Hyster-Yale	1	0	1	0	2.00

Hyster-Yale has a consensus target price of $70.00, suggesting a potential upside of 92.47%. Given Hyster-Yale’s stronger consensus rating and higher probable upside, analysts plainly believe Hyster-Yale is more favorable than Hitachi Constr.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hitachi Constr	N/A	N/A	N/A
Hyster-Yale	0.56%	9.57%	2.39%

Dividends

Hitachi Constr pays an annual dividend of $2.29 per share and has a dividend yield of 3.6%. Hyster-Yale pays an annual dividend of $1.44 per share and has a dividend yield of 4.0%. Hitachi Constr pays out 42.0% of its earnings in the form of a dividend. Hyster-Yale pays out 116.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Hyster-Yale has increased its dividend for 1 consecutive years. Hyster-Yale is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Hyster-Yale beats Hitachi Constr on 12 of the 17 factors compared between the two stocks.

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.

About Hyster-Yale

Hyster-Yale, Inc., through its subsidiaries, designs, engineers, manufactures, sells, and services a line of lift trucks, attachments, and aftermarket parts worldwide. The company manufactures components, such as frames, masts, and transmissions; and assembles lift trucks. It markets its products primarily under the Hyster and Yale brand names to independent Hyster and Yale retail dealerships. The company also sells aftermarket parts under the Hyster and Yale, as well as UNISOURCE and PREMIER brands to Hyster and Yale dealers for the service of competitor lift trucks. In addition, it produces and distributes attachments, forks, and lift tables under the Bolzoni, Auramo, and Meyer brand names; and designs and produces products in the port equipment and rough terrain forklift markets. Further, the company designs, manufactures, and sells hydrogen fuel-cell stacks and engines. It serves light and heavy manufacturers, trucking and automotive companies, rental companies, building materials and paper suppliers, lumber, metal products, warehouses, retailers, food distributors, container handling companies, and U.S. and non-U.S. governmental agencies. The company was formerly known as Hyster-Yale Materials Handling, Inc. and changed its name to Hyster-Yale, Inc. in June 2024. Hyster-Yale, Inc. was incorporated in 1991 and is headquartered in Cleveland, Ohio.