Allison Transmission Holdings (NYSE: ALSN) and Manitowoc Company, Inc. (The) (NYSE:MTW) are both auto/tires/trucks companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, analyst recommendations, profitability, dividends and risk.
Earnings and Valuation
This table compares Allison Transmission Holdings and Manitowoc Company, Inc. (The)’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Allison Transmission Holdings||$1.98 billion||2.76||$707.40 million||$1.78||20.66|
|Manitowoc Company, Inc. (The)||$1.43 billion||0.98||-$3.00 million||($1.51)||-6.58|
Allison Transmission Holdings has higher revenue and earnings than Manitowoc Company, Inc. (The). Manitowoc Company, Inc. (The) is trading at a lower price-to-earnings ratio than Allison Transmission Holdings, indicating that it is currently the more affordable of the two stocks.
This is a summary of current recommendations and price targets for Allison Transmission Holdings and Manitowoc Company, Inc. (The), as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Allison Transmission Holdings||2||6||4||0||2.17|
|Manitowoc Company, Inc. (The)||0||6||3||0||2.33|
Allison Transmission Holdings currently has a consensus target price of $39.63, suggesting a potential upside of 7.74%. Manitowoc Company, Inc. (The) has a consensus target price of $7.36, suggesting a potential downside of 25.92%. Given Allison Transmission Holdings’ higher possible upside, equities analysts clearly believe Allison Transmission Holdings is more favorable than Manitowoc Company, Inc. (The).
This table compares Allison Transmission Holdings and Manitowoc Company, Inc. (The)’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Allison Transmission Holdings||14.32%||31.27%||6.77%|
|Manitowoc Company, Inc. (The)||-14.63%||-14.85%||-5.70%|
Allison Transmission Holdings pays an annual dividend of $0.60 per share and has a dividend yield of 1.6%. Manitowoc Company, Inc. (The) does not pay a dividend. Allison Transmission Holdings pays out 33.7% of its earnings in the form of a dividend. Allison Transmission Holdings has increased its dividend for 4 consecutive years.
Risk & Volatility
Allison Transmission Holdings has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500. Comparatively, Manitowoc Company, Inc. (The) has a beta of 1.38, indicating that its share price is 38% more volatile than the S&P 500.
Insider and Institutional Ownership
81.0% of Manitowoc Company, Inc. (The) shares are owned by institutional investors. 7.9% of Allison Transmission Holdings shares are owned by company insiders. Comparatively, 2.8% of Manitowoc Company, Inc. (The) shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Allison Transmission Holdings beats Manitowoc Company, Inc. (The) on 12 of the 16 factors compared between the two stocks.
About Allison Transmission Holdings
Allison Transmission Holdings, Inc. and its subsidiaries design and manufacture commercial and defense fully-automatic transmissions. The Company manufactures fully-automatic transmissions for medium- and heavy-duty commercial vehicles, and medium-and heavy-tactical United States defense vehicles. The Company’s transmissions are used in a range of applications, including on-highway trucks (distribution, refuse, construction, fire and emergency), buses (primarily school, transit and hybrid-transit), motorhomes, off-highway vehicles and equipment (energy, mining and construction) and defense vehicles (wheeled and tracked). The Company’s transmissions are sold under the Allison Transmission brand name and remanufactured transmissions are sold under the ReTran brand name. The Company has developed over 100 different models that were used in more than 2,500 different vehicle configurations and were compatible with over 500 combinations of engines, as of December 31, 2016.
About Manitowoc Company, Inc. (The)
The Manitowoc Company, Inc. is a provider of engineered lifting equipment for the construction industry. The Company operates through the Crane business segment. It designs, manufactures and distributes a line of crawler-mounted lattice-boom cranes, which it sells under the Manitowoc brand name. It also designs and manufactures a line of top-slewing and self-erecting tower cranes, which it sells under the Potain brand name. It designs and manufactures mobile telescopic cranes, which it sells under the Grove brand name and a line of hydraulically powered telescopic boom trucks, which it sells under the National Crane brand name. It also provides crane product parts and services and crane rebuilding, remanufacturing and training services, which are delivered under the Manitowoc Crane Care brand name. Its crane products are used in a range of applications, including energy production/distribution and utilities, petrochemical and industrial projects, and infrastructure applications.
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