Financial Review: KION GRP AG/ADR (KIGRY) and Hyster-Yale Materials Handling (HY)

KION GRP AG/ADR (OTCMKTS:KIGRY) and Hyster-Yale Materials Handling (NYSE:HY) are both industrial products companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitability, institutional ownership, valuation, risk and dividends.

Insider and Institutional Ownership

49.9% of Hyster-Yale Materials Handling shares are held by institutional investors. 26.6% of Hyster-Yale Materials Handling shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for KION GRP AG/ADR and Hyster-Yale Materials Handling, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
KION GRP AG/ADR 0 1 1 0 2.50
Hyster-Yale Materials Handling 0 2 0 0 2.00

Hyster-Yale Materials Handling has a consensus price target of $76.00, suggesting a potential upside of 23.30%. Given Hyster-Yale Materials Handling’s higher probable upside, analysts plainly believe Hyster-Yale Materials Handling is more favorable than KION GRP AG/ADR.

Dividends

KION GRP AG/ADR pays an annual dividend of $0.18 per share and has a dividend yield of 1.5%. Hyster-Yale Materials Handling pays an annual dividend of $1.24 per share and has a dividend yield of 2.0%. KION GRP AG/ADR pays out 17.1% of its earnings in the form of a dividend. Hyster-Yale Materials Handling pays out 30.5% 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. Hyster-Yale Materials Handling has increased its dividend for 5 consecutive years. Hyster-Yale Materials Handling is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

KION GRP AG/ADR has a beta of 0.26, indicating that its share price is 74% less volatile than the S&P 500. Comparatively, Hyster-Yale Materials Handling has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500.

Earnings and Valuation

This table compares KION GRP AG/ADR and Hyster-Yale Materials Handling’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
KION GRP AG/ADR $8.65 billion 0.61 $480.15 million $1.05 11.63
Hyster-Yale Materials Handling $2.89 billion 0.35 $48.60 million $4.06 15.18

KION GRP AG/ADR has higher revenue and earnings than Hyster-Yale Materials Handling. KION GRP AG/ADR is trading at a lower price-to-earnings ratio than Hyster-Yale Materials Handling, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares KION GRP AG/ADR and Hyster-Yale Materials Handling’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
KION GRP AG/ADR 5.48% 13.94% 3.57%
Hyster-Yale Materials Handling 1.07% 7.86% 2.73%

Summary

KION GRP AG/ADR beats Hyster-Yale Materials Handling on 9 of the 17 factors compared between the two stocks.

About KION GRP AG/ADR

KION GROUP AG provides supply chain solutions worldwide. The company operates through Industrial Trucks and Services, and Supply Chain Solutions segments. It develops, manufactures, and sells forklifts and warehouse trucks, such as counterbalance trucks with electric drive and IC engine, ride-on and hand-operated industrial trucks, towing vehicles, and automated trucks and autonomous trucks under the Linde, Fenwick, STILL, OM STILL, Baoli, and OM Voltas brands. The company also manufactures and sells spare parts; leases industrial trucks and related items; offers maintenance and repair services; and finances long-term leases. In addition, it provides integrated technology and software solutions, including conveyors, sorters, storage and retrieval systems, picking equipment, and palletisers under the Dematic brand. The company was formerly known as KION Holding 1 GmbH. KION GROUP AG was founded in 2006 and is headquartered in Frankfurt am Main, Germany.

About Hyster-Yale Materials Handling

Hyster-Yale Materials Handling, Inc., through its subsidiaries, designs, engineers, manufactures, sells, and services a line of lift trucks and aftermarket parts worldwide. The company operates through five segments: the Americas, EMEA, JAPIC, Bolzoni, and Nuvera. It manufactures components, such as frames, masts, and transmissions; and assembles lift trucks. The company markets its products under the Hyster and Yale brand names to independent Hyster and Yale retail dealerships. It also sells aftermarket parts under the UNISOURCE and PREMIER brands to Hyster and Yale dealers for the service of competitor lift trucks. In addition, the company produces forklift truck attachments, forks, and lift tables under the Bolzoni Auramo and Meyer brand names. Hyster-Yale Materials Handling, Inc. was incorporated in 1991 and is headquartered in Cleveland, Ohio.

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