Comparing Lindsay (NYSE:LNN) & CECO Environmental (NASDAQ:CECO)

Lindsay (NYSE:LNN) and CECO Environmental (NASDAQ:CECO) are both industrials 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, profitability and dividends.

Institutional & Insider Ownership

89.9% of Lindsay shares are owned by institutional investors. Comparatively, 68.1% of CECO Environmental shares are owned by institutional investors. 1.8% of Lindsay shares are owned by insiders. Comparatively, 18.4% of CECO Environmental shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Lindsay and CECO Environmental’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lindsay	8.79%	10.73%	6.63%
CECO Environmental	-3.39%	7.36%	3.41%

Volatility and Risk

Lindsay has a beta of 0.69, suggesting that its share price is 31% less volatile than the S&P 500. Comparatively, CECO Environmental has a beta of 1.5, suggesting that its share price is 50% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Lindsay and CECO Environmental, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lindsay	0	3	0	0	2.00
CECO Environmental	1	1	8	0	2.70

Lindsay presently has a consensus target price of $121.00, indicating a potential upside of 6.58%. CECO Environmental has a consensus target price of $104.88, indicating a potential upside of 58.83%. Given CECO Environmental’s stronger consensus rating and higher probable upside, analysts clearly believe CECO Environmental is more favorable than Lindsay.

Earnings & Valuation

This table compares Lindsay and CECO Environmental”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lindsay	$627.86 million	1.84	$74.05 million	$5.21	21.79
CECO Environmental	$774.38 million	4.99	$50.05 million	($0.69)	-95.70

Lindsay has higher earnings, but lower revenue than CECO Environmental. CECO Environmental is trading at a lower price-to-earnings ratio than Lindsay, indicating that it is currently the more affordable of the two stocks.

About Lindsay

Lindsay Corporation, together with its subsidiaries, provides water management and road infrastructure products and services in the United States and internationally. It operates in two segments, Irrigation and Infrastructure. The Irrigation segment manufactures and markets center pivot, lateral move irrigation systems, and irrigation controls under the Zimmatic brand; hose reel travelers under the Perrot brand; and chemical injection systems, variable rate irrigation systems, flow meters, weather stations, soil moisture sensors, and remote monitoring and control systems. It also offers repair and replacement parts for its irrigation systems and controls, and diameter steel tubing; global positioning system positioning and guidance, variable rate irrigation, wireless irrigation management, irrigation scheduling, and smartphone applications; and industrial Internet of Things technology solutions, data acquisition and management systems, and custom electronic equipment for applications under the Elecsys brand. The Infrastructure segment provides Road Zipper System comprised of T-shaped concrete and steel barriers, barrier transfer machine, and variable length barriers which are used for highway reconstruction, paving and resurfacing, road widening, median and shoulder construction, and repairs to tunnels and bridges. Additionally, it offers redirective and non-redirective crash cushions 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; specialty barriers; preformed tape and road safety accessory products, as well as rail products, such as signals and lights, structures, foundations, junction boxes, and signs. Lindsay Corporation was founded in 1955 and is headquartered in Omaha, Nebraska.

About CECO Environmental

CECO Environmental Corp. provides critical solutions in industrial air quality, industrial water treatment, and energy transition solutions worldwide. It operates in two segments: Engineered Systems and Industrial Process Solutions. The company engineers, designs, manufactures, and installs non-metallic expansion joints and flow control products, including rubber expansion joints, ducting expansion joints, and industrial pinch and duck bill valves; membrane-based industrial water and wastewater treatment systems; and provides dust and fume extraction solutions comprising consultation, design, manufacturing, installation, and service, as well as water and wastewater treatment solutions. It offers engineered and configured products and solutions, including dampers and diverters, expansion joints, selective catalytic reduction systems, severe-service and industrial cyclones, dust collectors, thermal oxidizers, filtration systems, wet and dry scrubbers, separators and coalescers, water treatment packages, metallic and non-metallic pumps, industrial silencers, and fluid handling equipment, as well as plant engineering services and engineered design build fabrication services. In addition, the company offers industrial engineered noise control solutions, including custom acoustical gen-set packages, ambient air baffles, acoustical louvres, and skid enclosures; process filtration solutions for hydrocarbon and chemical processing; and energy and water conservation systems and equipment. The company markets its products and services to natural gas processors, transmission and distribution companies, refineries, power generators, industrial manufacturing, engineering and construction companies, semiconductor manufacturers, compressor manufacturers, beverage can manufacturers, metals and minerals, and electric vehicle producers. CECO Environmental Corp. was founded in 1869 and is headquartered in Dallas, Texas.