Head to Head Comparison: Valmont Industries (NYSE:VMI) versus Taylor Devices (NASDAQ:TAYD)

Taylor Devices (NASDAQ:TAYD) and Valmont Industries (NYSE:VMI) are both industrials companies, but which is the better stock? We will compare the two companies based on the strength of their risk, institutional ownership, analyst recommendations, earnings, dividends, valuation and profitability.

Insider & Institutional Ownership

17.6% of Taylor Devices shares are owned by institutional investors. Comparatively, 87.8% of Valmont Industries shares are owned by institutional investors. 7.7% of Taylor Devices shares are owned by company insiders. Comparatively, 1.4% of Valmont Industries shares are owned 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.

Valuation & Earnings

This table compares Taylor Devices and Valmont Industries”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Taylor Devices	$41.65 million	4.40	$8.56 million	$2.07	27.43
Valmont Industries	$4.10 billion	2.22	$334.78 million	$25.68	18.35

Valmont Industries has higher revenue and earnings than Taylor Devices. Valmont Industries is trading at a lower price-to-earnings ratio than Taylor Devices, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Taylor Devices and Valmont Industries, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Taylor Devices	0	2	1	1	2.75
Valmont Industries	0	2	4	0	2.67

Taylor Devices currently has a consensus price target of $70.00, suggesting a potential upside of 23.26%. Valmont Industries has a consensus price target of $587.00, suggesting a potential upside of 24.54%. Given Valmont Industries’ higher probable upside, analysts clearly believe Valmont Industries is more favorable than Taylor Devices.

Risk and Volatility

Taylor Devices has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500. Comparatively, Valmont Industries has a beta of 1.34, suggesting that its share price is 34% more volatile than the S&P 500.

Profitability

This table compares Taylor Devices and Valmont Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Taylor Devices	17.50%	9.64%	8.90%
Valmont Industries	11.70%	25.57%	12.44%

Summary

Valmont Industries beats Taylor Devices on 9 of the 15 factors compared between the two stocks.

About Taylor Devices

Taylor Devices, Inc. engages in design, development, manufacture, and marketing of shock absorption, rate control, and energy storage devices for use in machinery, equipment, and structures in the United States, Asia, and internationally. Its products include seismic dampers that are designed to mitigate the effects of earthquakes on structures; Fluidicshoks, which are compact shock absorbers primarily used in defense, aerospace, and commercial industries; and crane and industrial buffers, which are larger versions of the Fluidicshoks for industrial application on cranes and crane trolleys, truck docks, ladle and ingot cars, ore trolleys, and train car stops. The company's products also comprise self-adjusting shock absorbers that include versions of Fluidicshoks, and crane and industrial buffers, which automatically adjust to various impact conditions and are designed for high cycle application primarily in the heavy industry; liquid die springs that are used as component parts of machinery and equipment used in the manufacture of tools and dies; vibration dampers, which are primarily used by aerospace and defense industries to control the response of electronics and optical systems subjected to air, ship, or spacecraft vibration; machined springs used in the aerospace applications; and custom actuators for special aerospace and defense applications. It markets its products through a network of sales representatives and distributors. The company was incorporated in 1955 and is headquartered in North Tonawanda, New York.

About Valmont Industries

Valmont Industries, Inc. operates as manufacturer of products and services for infrastructure and agriculture markets in the United States, Australia, Brazil, and internationally. It operates through two segments, Infrastructure and Agriculture. The company manufactures and distributes steel, pre-stressed concrete, composite structures for electrical transmission, substation, and distribution applications; and designs, engineers, and manufactures metal, steel, wood, aluminum, and composite poles and structures for lighting and transportation applications. It also offers galvanizing, anodizing, painting, and powder coating services for paint products; towers, small cell structures, camouflage concealment solutions, passive intermodulation mitigation equipment, and components for wireless communication markets; and solar single-axis tracker product, an integrated system of steel structures, electric motors, and electronic controllers, as well as provides coatings services to preserve metal products. In addition, the company manufactures center pivot components and linear irrigation equipment for the agricultural markets, such as parts and tubular products for industrial customers; advanced technology solutions for agricultural sector; mechanical irrigation equipment and service parts under the Valley brand name. It serves municipalities and government entities, commercial lighting fixtures manufacturing companies, contractors, telecommunications and utility companies, and farmers, as well as the general manufacturing sector. Valmont Industries, Inc. was founded in 1946 and is headquartered in Omaha, Nebraska.