Douglas Dynamics (NYSE:PLOW) and Lonking (OTCMKTS:LONKF) are both small-cap auto/tires/trucks companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, earnings, dividends and institutional ownership.
This table compares Douglas Dynamics and Lonking’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
88.7% of Douglas Dynamics shares are owned by institutional investors. 3.1% of Douglas Dynamics shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Douglas Dynamics and Lonking’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Douglas Dynamics||$474.93 million||1.77||$55.32 million||$1.36||27.40|
|Lonking||$1.33 billion||0.96||$154.75 million||N/A||N/A|
Lonking has higher revenue and earnings than Douglas Dynamics.
Volatility and Risk
Douglas Dynamics has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500. Comparatively, Lonking has a beta of 0.59, suggesting that its share price is 41% less volatile than the S&P 500.
This is a summary of current recommendations for Douglas Dynamics and Lonking, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Douglas Dynamics currently has a consensus price target of $43.50, suggesting a potential upside of 16.72%. Given Douglas Dynamics’ higher probable upside, research analysts clearly believe Douglas Dynamics is more favorable than Lonking.
Douglas Dynamics pays an annual dividend of $1.06 per share and has a dividend yield of 2.8%. Lonking does not pay a dividend. Douglas Dynamics pays out 77.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Douglas Dynamics has increased its dividend for 5 consecutive years.
Douglas Dynamics beats Lonking on 11 of the 14 factors compared between the two stocks.
About Douglas Dynamics
Douglas Dynamics, Inc. operates as a manufacturer and up-fitter of commercial work truck attachments and equipment primarily in North America. It operates in two segments, Work Truck Attachments and Work Truck Solutions. The Work Truck Attachments segment manufactures and sells snow and ice control attachments, including snowplows, and sand and salt spreaders for light and heavy duty trucks, as well as various related parts and accessories. It also provides customized turnkey solutions to governmental agencies, such as departments of transportation and municipalities. This segment offers snow and ice management attachments under the BLIZZARD, FISHER, HENDERSON, SNOWEX, and WESTERN brands; turf care equipment under the TURFEX brand; and industrial maintenance equipment under the SWEEPEX brand. It sells its products to professional snowplowers who are contracted to remove snow and ice from commercial, municipal, and residential areas. The Work Truck Solutions segment provides truck and vehicle up-fits where it attaches component pieces of equipment, truck bodies, racking, and storage solutions to a vehicle chassis for use by end users for work related purposes; and manufactures storage solutions for trucks and vans, and cable pulling equipment for trucks. This segment offers up-fit and storage solutions under the DEJANA brand and its related sub-brands. The company was founded in 2004 and is headquartered in Milwaukee, Wisconsin.
Lonking Holdings Limited, an investment holding company, manufactures and distributes wheel loaders, road rollers, excavators, forklifts, and other construction machinery in Mainland China. The companys products also include hydraulic excavators, skid steer loaders, motor graders, bulldozers, and stackers. It also develops and produces components, including gearboxes, torque converters, axles, hydraulic components, gear pipes and driver shaft, and other products; and provides loader, excavator, forklift, road machinery, warehouse, and other parts, as well as maintenance and support services. In addition, the company offers finance leasing for construction machinery. Further, it distributes wheel loaders and other machinery; and trades in construction machinery and components. Lonking Holdings Limited was founded in 1993 and is headquartered in Shanghai, the Peoples Republic of China.
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