Head-To-Head Analysis: Hurco Companies (NASDAQ:HURC) vs. Manitowoc (NYSE:MTW)

Hurco Companies (NASDAQ:HURC) and Manitowoc (NYSE:MTW) are both small-cap industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, institutional ownership, risk, profitability, analyst recommendations and earnings.

Analyst Ratings

This is a summary of recent ratings and target prices for Hurco Companies and Manitowoc, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hurco Companies	1	0	0	0	1.00
Manitowoc	2	1	0	0	1.33

Manitowoc has a consensus price target of $14.00, suggesting a potential downside of 34.83%. Given Manitowoc’s stronger consensus rating and higher possible upside, analysts plainly believe Manitowoc is more favorable than Hurco Companies.

Risk and Volatility

Hurco Companies has a beta of 0.71, meaning that its stock price is 29% less volatile than the S&P 500. Comparatively, Manitowoc has a beta of 1.74, meaning that its stock price is 74% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hurco Companies	-3.58%	-3.37%	-2.51%
Manitowoc	0.87%	3.86%	1.43%

Dividends

Hurco Companies pays an annual dividend of $0.64 per share and has a dividend yield of 3.0%. Manitowoc pays an annual dividend of $0.08 per share and has a dividend yield of 0.4%. Hurco Companies pays out -62.1% of its earnings in the form of a dividend. Manitowoc pays out 14.5% 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. Hurco Companies is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares Hurco Companies and Manitowoc”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hurco Companies	$183.24 million	0.75	-$15.12 million	($1.03)	-20.58
Manitowoc	$2.32 billion	0.33	$7.20 million	$0.55	39.06

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

Insider & Institutional Ownership

74.4% of Hurco Companies shares are held by institutional investors. Comparatively, 78.7% of Manitowoc shares are held by institutional investors. 9.9% of Hurco Companies shares are held by insiders. Comparatively, 4.0% of Manitowoc 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.

Summary

Manitowoc beats Hurco Companies on 11 of the 15 factors compared between the two stocks.

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.

About Manitowoc

The Manitowoc Company, Inc. provides engineered lifting solutions in the Americas, Europe, Africa, the Middle East, the Asia Pacific, and internationally. It designs, manufactures, and distributes crawler-mounted lattice-boom cranes under the Manitowoc brand; a line of top-slewing and self-erecting tower cranes under the Potain brand; mobile hydraulic cranes under the Grove, Shuttlelift, and National Crane brands; and hydraulic boom trucks under the National Crane brand. The company also provides aftermarket services, such as sale of parts and accessories, field service work, routine maintenance services, technical support, erection and decommissioning services, crane and component remanufacturing, training, and telematics services. Its crane products are used in various applications, including energy production/distribution and utilities; petrochemical and industrial; infrastructure, such as road, bridge, and airport construction; and commercial and residential construction. The company serves a range of customers, including dealers, rental companies, contractors, and government entities in the petrochemical, industrial, commercial construction, power and utilities, infrastructure, and residential construction end markets. The Manitowoc Company, Inc. was founded in 1902 and is headquartered in Milwaukee, Wisconsin.