Contrasting Arts-Way Manufacturing (ARTW) & Lindsay (LNN)

Arts-Way Manufacturing (NASDAQ:ARTW) and Lindsay (NYSE:LNN) are both small-cap industrial products companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, institutional ownership, profitability and risk.

Dividends

Lindsay pays an annual dividend of $1.24 per share and has a dividend yield of 1.3%. Arts-Way Manufacturing does not pay a dividend. Lindsay pays out 42.2% of its earnings in the form of a dividend. Lindsay has increased its dividend for 15 consecutive years.

Institutional & Insider Ownership

4.4% of Arts-Way Manufacturing shares are owned by institutional investors. Comparatively, 96.8% of Lindsay shares are owned by institutional investors. 45.3% of Arts-Way Manufacturing shares are owned by company insiders. Comparatively, 1.1% of Lindsay 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.

Risk & Volatility

Arts-Way Manufacturing has a beta of 0.81, suggesting that its stock price is 19% less volatile than the S&P 500. Comparatively, Lindsay has a beta of 0.41, suggesting that its stock price is 59% less volatile than the S&P 500.

Profitability

This table compares Arts-Way Manufacturing and Lindsay’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Arts-Way Manufacturing -13.46% -17.06% -11.23%
Lindsay 3.70% 11.53% 6.18%

Valuation & Earnings

This table compares Arts-Way Manufacturing and Lindsay’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Arts-Way Manufacturing $20.72 million 0.47 -$1.63 million N/A N/A
Lindsay $547.71 million 1.91 $20.27 million $2.94 33.12

Lindsay has higher revenue and earnings than Arts-Way Manufacturing.

Analyst Ratings

This is a summary of current ratings for Arts-Way Manufacturing and Lindsay, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Arts-Way Manufacturing 0 0 0 0 N/A
Lindsay 1 3 1 0 2.00

Lindsay has a consensus price target of $91.00, indicating a potential downside of 6.32%. Given Lindsay’s higher probable upside, analysts plainly believe Lindsay is more favorable than Arts-Way Manufacturing.

Summary

Lindsay beats Arts-Way Manufacturing on 11 of the 14 factors compared between the two stocks.

Arts-Way Manufacturing Company Profile

Art's-Way Manufacturing Co., Inc. manufactures and sells agricultural equipment, specialized modular science buildings, and steel cutting tools worldwide. The company operates through three segments: Agricultural Products, Modular Buildings, and Tools. The Agricultural Products segment offers specialized farm machineries, including portable and stationary animal feed processing equipment and related attachments; hay and forage equipment; portable grain augers; manure spreaders; sugar beet harvesting equipment; land maintenance equipment; moldboard plows; potato harvesters; reels for combines and swathers; silage blowers and reels; and after-market service parts under the Art's-Way, Miller Pro, Roda, M&W, Badger, and UHC by Art's-Way brands. The Modular Buildings segment produces and sells swine buildings and complex containment research laboratories, as well as research facilities for academic research institutions, government research and diagnostic centers, public health institutions, and private research and pharmaceutical companies. The Tools segment offers standard single point brazed carbide tipped tools, and polycrystalline diamond and cubic boron nitride inserts and tools. The company markets and sells its products through independent farm equipment dealers, manufacturers' representatives, direct sales, and original equipment manufacturer sales channels. Art's-Way Manufacturing Co., Inc. was founded in 1956 and is based in Armstrong, Iowa.

Lindsay Company Profile

Lindsay Corporation, together with its subsidiaries, provides water management and road infrastructure products and services in the United States and internationally. The company's Irrigation segment manufactures and markets center pivot, lateral move irrigation systems, and irrigation controls under the Zimmatic brand; hose reel travelers under the Perrot and Greenfield brands; and chemical injection systems, variable rate irrigation systems, flow meters, weather stations, soil moisture sensors, and remote monitoring and control systems under the GrowSmart brand. This segment also offers repair and replacement parts for irrigation systems and controls; and M2M communication technology solutions, data acquisition and management systems, and custom electronic equipment under the Elecsys brand. Its Infrastructure segment provides Quickchange moveable barrier systems that help in highway reconstruction, paving and resurfacing, road widening, median and shoulder construction, and tunnels and bridge repairs; and re-directive and non-re-directive crash cushions, which are used 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. This segment also offers specialty barrier products; road marking and road safety equipment; and railroad signals and structures, and diameter steel tubing products, as well as outsourced manufacturing and production services for other companies. The company serves departments of transportation, municipal transportation road agencies, roadway contractors, subcontractors, distributors, and dealers. Lindsay Corporation was founded in 1954 and is headquartered in Omaha, Nebraska.

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