Financial Analysis: Hurco Companies (NASDAQ:HURC) & Komatsu (OTCMKTS:KMTUY)

Komatsu (OTCMKTS:KMTUY) and Hurco Companies (NASDAQ:HURC) are both industrials companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, profitability, risk, earnings and dividends.

Profitability

This table compares Komatsu and Hurco Companies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Komatsu	8.93%	10.51%	5.93%
Hurco Companies	-3.58%	-3.37%	-2.51%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Komatsu and Hurco Companies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Komatsu	0	1	0	0	2.00
Hurco Companies	1	0	0	0	1.00

Earnings & Valuation

This table compares Komatsu and Hurco Companies”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Komatsu	$27.45 billion	1.64	$2.48 billion	$2.73	17.77
Hurco Companies	$178.55 million	0.79	-$15.12 million	($1.03)	-21.02

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

Volatility and Risk

Komatsu has a beta of 1.06, indicating that its share price is 6% more volatile than the S&P 500. Comparatively, Hurco Companies has a beta of 0.7, indicating that its share price is 30% less volatile than the S&P 500.

Institutional & Insider Ownership

0.2% of Komatsu shares are held by institutional investors. Comparatively, 74.4% of Hurco Companies shares are held by institutional investors. 2.9% of Komatsu shares are held by insiders. Comparatively, 9.9% of Hurco Companies shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Komatsu beats Hurco Companies on 10 of the 12 factors compared between the two stocks.

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.

About Hurco Companies

Hurco Companies, Inc., an industrial technology company, designs, manufactures, and sells computerized machine tools to companies in the metal cutting industry worldwide. Its principal products include general-purpose computerized machine tools, including vertical and horizontal machining centers, turning centers, and toolroom machines. The company also provides computer control systems and related software for press brake applications. In addition, it offers machine tool components, automation integration equipment, and solutions for job shops; and software options, control upgrades, and accessories and replacement parts for its products, as well as customer service, training, and applications support services. Further, the company provides Autobend computer control systems for press brake machines. It serves independent job shops and specialized short-run production applications within large manufacturing operations, as well as precision tool, die, and mold manufacturers in aerospace, defense, medical equipment, energy, automotive/transportation, electronics, and computer industries. The company sells its products under the Hurco, Milltronics, and Takumi brands through independent agents and distributors, as well as through its direct sales and service organizations. Hurco Companies, Inc. was incorporated in 1968 and is headquartered in Indianapolis, Indiana.