Financial Analysis: Hyster-Yale Materials Handling (HY) versus Meritor (MTOR)
Hyster-Yale Materials Handling (NYSE: HY) and Meritor (NYSE:MTOR) are both small-cap industrial products companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, valuation, analyst recommendations, institutional ownership, profitabiliy and dividends.
Institutional & Insider Ownership
67.9% of Hyster-Yale Materials Handling shares are held by institutional investors. Comparatively, 92.8% of Meritor shares are held by institutional investors. 26.3% of Hyster-Yale Materials Handling shares are held by company insiders. Comparatively, 2.9% of Meritor shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This table compares Hyster-Yale Materials Handling and Meritor’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Hyster-Yale Materials Handling||1.90%||10.53%||4.03%|
Hyster-Yale Materials Handling pays an annual dividend of $1.21 per share and has a dividend yield of 1.7%. Meritor does not pay a dividend. Hyster-Yale Materials Handling pays out 39.0% of its earnings in the form of a dividend. Hyster-Yale Materials Handling has increased its dividend for 4 consecutive years.
Volatility & Risk
Hyster-Yale Materials Handling has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500. Comparatively, Meritor has a beta of 2.21, indicating that its share price is 121% more volatile than the S&P 500.
This is a summary of current recommendations and price targets for Hyster-Yale Materials Handling and Meritor, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Hyster-Yale Materials Handling||0||2||1||0||2.33|
Hyster-Yale Materials Handling presently has a consensus target price of $74.00, indicating a potential upside of 4.51%. Meritor has a consensus target price of $16.17, indicating a potential downside of 9.07%. Given Hyster-Yale Materials Handling’s higher probable upside, equities analysts clearly believe Hyster-Yale Materials Handling is more favorable than Meritor.
Valuation & Earnings
This table compares Hyster-Yale Materials Handling and Meritor’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Hyster-Yale Materials Handling||$2.68 billion||0.43||$100.10 million||$3.10||22.84|
|Meritor||$3.07 billion||0.51||$248.00 million||$5.96||2.98|
Meritor has higher revenue and earnings than Hyster-Yale Materials Handling. Meritor 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.
Meritor beats Hyster-Yale Materials Handling on 11 of the 17 factors compared between the two stocks.
Hyster-Yale Materials Handling Company Profile
Hyster-Yale Materials Handling, Inc. is a lift truck manufacturer. The Company designs, engineers, manufactures, sells and services a line of lift trucks, attachments and aftermarket parts marketed globally under the Hyster and Yale brand names, mainly to independent Hyster and Yale retail dealerships. The Company operates through five segments: the Americas, EMEA, JAPIC, Bolzoni and Nuvera. The Company offers a range of solutions, including attachments and hydrogen fuel cell power products, telematics, automation and fleet management services, as well as an array of other power options for its lift trucks. The Company’s segments for the lift truck business include three management units: the Americas, EMEA and JAPIC. Americas includes operations in the United States, Canada, Mexico, Brazil, Latin America and its corporate headquarters. EMEA includes operations in Europe, the Middle East and Africa. JAPIC includes operations in the Asia and Pacific regions including China.
Meritor Company Profile
Meritor, Inc. is a supplier of a range of integrated systems, modules and components to original equipment manufacturers (OEMs) and the aftermarket for the commercial vehicle, transportation and industrial sectors. The Company’s segments include Commercial Truck & Industrial and Aftermarket & Trailer. The Commercial Truck & Industrial segment supplies drivetrain systems and components, including axles, drivelines and braking and suspension systems, for medium- and heavy-duty trucks, off-highway, military, construction, bus and coach, fire and emergency and other applications in North America, South America, Europe and Asia Pacific. The Commercial Truck & Industrial segment also includes the Company’s aftermarket businesses in Asia Pacific and South America. The Aftermarket & Trailer segment supplies axles, brakes, drivelines, suspension parts and other replacement and remanufactured parts to commercial vehicle aftermarket customers in North America and Europe.
Receive News & Ratings for Hyster-Yale Materials Handling Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Hyster-Yale Materials Handling Inc. and related companies with MarketBeat.com's FREE daily email newsletter.