Head-To-Head Review: Konecranes (OTCMKTS:KNCRY) & Alamo Group (NYSE:ALG)

Alamo Group (NYSE:ALG) and Konecranes (OTCMKTS:KNCRY) are both industrial products companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, institutional ownership and valuation.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Alamo Group and Konecranes, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alamo Group	0	0	3	0	3.00
Konecranes	0	0	1	0	3.00

Alamo Group currently has a consensus target price of $215.33, suggesting a potential downside of 0.06%. Given Alamo Group’s higher possible upside, equities research analysts plainly believe Alamo Group is more favorable than Konecranes.

Valuation & Earnings

This table compares Alamo Group and Konecranes’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alamo Group	$1.69 billion	1.54	$136.16 million	$11.36	18.97
Konecranes	N/A	N/A	N/A	$0.23	46.30

Alamo Group has higher revenue and earnings than Konecranes. Alamo Group is trading at a lower price-to-earnings ratio than Konecranes, indicating that it is currently the more affordable of the two stocks.

Dividends

Alamo Group pays an annual dividend of $1.04 per share and has a dividend yield of 0.5%. Konecranes pays an annual dividend of $0.13 per share and has a dividend yield of 1.2%. Alamo Group pays out 9.2% of its earnings in the form of a dividend. Konecranes pays out 57.2% 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. Alamo Group has raised its dividend for 5 consecutive years.

Profitability

This table compares Alamo Group and Konecranes’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alamo Group	8.06%	15.52%	9.47%
Konecranes	N/A	N/A	N/A

Institutional & Insider Ownership

92.4% of Alamo Group shares are owned by institutional investors. 1.4% of Alamo Group shares are owned 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.

Summary

Alamo Group beats Konecranes on 11 of the 13 factors compared between the two stocks.

About Alamo Group

Alamo Group Inc. designs, manufactures, distributes, and services vegetation management and infrastructure maintenance equipment for governmental, industrial, and agricultural uses worldwide. It operates through two segments, Vegetation Management and Industrial Equipment. Its Vegetation Management Division segment offers hydraulically-powered and tractor – and off-road chassis mounted mowers, other cutters and replacement parts for heavy-duty and intensive uses and heavy duty, tractor- and truck-mounted mowing and vegetation maintenance equipment, and replacement parts. This segment also provides rotary and finishing mowers, flail and disc mowers, front-end loaders, backhoes, rotary tillers, posthole diggers, scraper blades and replacement parts, zero turn radius mowers, cutting parts, plain and hard-faced replacement tillage tools, disc blades, and fertilizer application components; aftermarket agricultural parts, heavy-duty mechanical rotary mowers, snow blowers, rock removal equipment, tractor attachments, agricultural implements, hydraulic and boom-mounted hedge and grass cutters, hedgerow cutters, industrial grass mowers, agricultural seedbed preparation cultivators, self-propelled sprayers and multi-drive load-carrying vehicles, and cutting blades. The company's Industrial Equipment Division segment offers truck-mounted air vacuum, mechanical broom, and regenerative air sweepers, pothole patchers, leaf collection equipment and replacement brooms, parking lot and street sweepers, excavators, catch basin cleaners, and roadway debris vacuum systems, as well as truck-mounted vacuum machines, combination sewer cleaners, and hydro excavators. This segment also offers ice control products, snowplows and heavy duty snow removal equipment, hitches, attachments, and graders; and public works and runway maintenance products, parts, and services, and high pressure cleaning systems and trenchers. The company was founded in 1955 and is headquartered in Seguin, Texas.

About Konecranes

Konecranes Plc manufactures, sells, and services material handling solutions. It operates through three segments: Service, Industrial Equipment, and Port Solutions. The company offers workstation lifting system, overhead cranes, hazardous environment cranes and hoists, warehouse automation, and core of lifting, such as gears, motors, and controls; and provides crane advisory services. It also provides crane inspection and preventive maintenance, predictive maintenance and remote monitoring, corrective maintenance and retrofits, consultation services, modernization services; and parts, such as hook latch triggers and rope guide. In addition, the company offers container handling equipment, mobile harbor cranes, lift trucks, shipyard and bulk handling equipment, and spare parts; and provides operational software and services, port services. It serves automotive, container handling, general manufacturing, intermodal, metal production, mining, nuclear, paper and forest, petroleum and gas, power, shipyards, and waste to energy and biomass sectors. Konecranes Plc was founded in 1910 and is headquartered in Hyvinkää, Finland.