Art’s-Way Manufacturing (NASDAQ:ARTW – Get Free Report) and Komatsu (OTCMKTS:KMTUY – Get Free Report) are both industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, earnings, dividends, risk, institutional ownership, profitability and valuation.
Analyst Recommendations
This is a breakdown of current ratings and price targets for Art’s-Way Manufacturing and Komatsu, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Art’s-Way Manufacturing | 1 | 0 | 0 | 0 | 1.00 |
| Komatsu | 0 | 1 | 0 | 2 | 3.33 |
Valuation and Earnings
This table compares Art’s-Way Manufacturing and Komatsu”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Art’s-Way Manufacturing | $25.99 million | 0.71 | $1.03 million | ($0.01) | -354.00 |
| Komatsu | $27.45 billion | 1.57 | $2.48 billion | $2.73 | 16.95 |
Komatsu has higher revenue and earnings than Art’s-Way Manufacturing. Art’s-Way Manufacturing is trading at a lower price-to-earnings ratio than Komatsu, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Art’s-Way Manufacturing has a beta of 1.06, indicating that its stock price is 6% more volatile than the S&P 500. Comparatively, Komatsu has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500.
Institutional & Insider Ownership
2.9% of Art’s-Way Manufacturing shares are held by institutional investors. Comparatively, 0.2% of Komatsu shares are held by institutional investors. 51.5% of Art’s-Way Manufacturing shares are held by insiders. Comparatively, 2.9% of Komatsu shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Dividends
Art’s-Way Manufacturing pays an annual dividend of $0.05 per share and has a dividend yield of 1.4%. Komatsu pays an annual dividend of $0.89 per share and has a dividend yield of 1.9%. Art’s-Way Manufacturing pays out -500.0% of its earnings in the form of a dividend. Komatsu pays out 32.6% 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.
Profitability
This table compares Art’s-Way Manufacturing and Komatsu’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Art’s-Way Manufacturing | -0.08% | -0.16% | -0.10% |
| Komatsu | 8.93% | 10.51% | 5.93% |
Summary
Komatsu beats Art’s-Way Manufacturing on 12 of the 15 factors compared between the two stocks.
About Art’s-Way Manufacturing
Art’s-Way Manufacturing Co., Inc. manufactures and distributes farm equipment products. It operates through the Agricultural Products, and Modular Buildings segments. The Agricultural Products segment manufactures a variety of specialized farm machinery under its own label including portable and stationary animal feed processing equipment and related attachments used to mill and mix feed grains into custom animal feed rations, a line of forage equipment consisting of forage boxes, bale processors, running gear, and dump boxes, a line of manure spreaders, sugar beet harvesting equipment, and a line of dirt work equipment. The Modular Buildings segment produces and sells modular buildings, which are custom designed to meet the specific research needs of its customers. It also provides services relating to the design, manufacturing, delivery, installation and renting of the building units that it produces. The company was founded by Arthur Luscombe in 1956 and is headquartered in Armstrong, IA.
About Komatsu
Komatsu Ltd. manufactures and sells construction, mining, and utility equipment in Japan, the Americas, Europe, China, Rest of Asia, Oceania, the Middle East, Africa, and CIS countries. It operates through three segments: Construction, Mining and Utility Equipment; Retail Finance; and Industrial Machinery and Others. The company offers construction and mining equipment, including excavators, wheel loaders, bulldozers, motor graders, dump truck, rope and hybrid shovels, electric wheel loaders, continuous miners, and jumbo drills. It also provides forestry equipment, including harvesters, forwarders, feller bunchers, excavators, mini excavators, and forklifts; demolition, waste, and recycling equipment, such as mobile crushers, hydraulic excavators, wheel loaders, and mini shovels; material handling equipment; and tunnel-boring machines, pipe layers, towing tractors, and engines. In addition, the company offers industrial machinery, including presses, sheet-metal machinery, 3D laser cutting machine, transfer machines, battery manufacturing equipment, wire saws, thermos modules, thermoelectric generation module, and temperature control products; quarry equipment; agricultural and livestock equipment; EH sensor device; iron and steel casting products; and logistics equipment. Further, the company provides retail financing; construction machinery rental services; remanufactured products; other support services; transportation, warehousing, packing, and other services; and purchases and sells used equipment. Komatsu Ltd. was founded in 1884 and is headquartered in Tokyo, Japan.
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