Financial Contrast: Columbus McKinnon (CMCO) & Lonking (LONKF)

Columbus McKinnon (NASDAQ:CMCO) and Lonking (OTCMKTS:LONKF) are both small-cap industrial products companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, earnings, institutional ownership, valuation, dividends and profitability.

Volatility and Risk

Columbus McKinnon has a beta of 1.73, suggesting that its share price is 73% more volatile than the S&P 500. Comparatively, Lonking has a beta of 0.59, suggesting that its share price is 41% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Columbus McKinnon and Lonking, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Columbus McKinnon 0 0 3 0 3.00
Lonking 0 0 0 0 N/A

Columbus McKinnon presently has a consensus price target of $51.33, suggesting a potential upside of 62.96%. Given Columbus McKinnon’s higher probable upside, equities research analysts plainly believe Columbus McKinnon is more favorable than Lonking.

Dividends

Columbus McKinnon pays an annual dividend of $0.20 per share and has a dividend yield of 0.6%. Lonking does not pay a dividend. Columbus McKinnon pays out 10.0% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares Columbus McKinnon and Lonking’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Columbus McKinnon $839.42 million 0.88 $22.06 million $2.01 15.67
Lonking $1.33 billion 0.96 $154.75 million N/A N/A

Lonking has higher revenue and earnings than Columbus McKinnon.

Profitability

This table compares Columbus McKinnon and Lonking’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Columbus McKinnon 2.49% 13.88% 5.03%
Lonking N/A N/A N/A

Institutional & Insider Ownership

97.7% of Columbus McKinnon shares are owned by institutional investors. 2.3% of Columbus McKinnon shares are owned by 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.

Summary

Columbus McKinnon beats Lonking on 9 of the 13 factors compared between the two stocks.

Columbus McKinnon Company Profile

Columbus McKinnon Corporation designs, manufactures, and markets hoists, actuators, cranes, rigging tools, digital power control systems, and other material handling products for commercial and industrial applications worldwide. It offers various electric chain hoists, electric wire rope hoists, hand-operated hoists, winches, lever tools, and air-powered hoists under the Budgit, Chester, CM, Coffing, Little Mule, Pfaff, Shaw-Box, Yale, STAHL, and other brands; below-the-hook tooling, clamps, and textile strappings; and explosion-protected hoists, as well as supplies hoist trolleys. The company also provides alloy and carbon steel chains; alloy chains under the Herc-Alloy brand; load chains and carbon steel welded-link chains; alloy and carbon steel closed-die forged chain attachments, including hooks, shackles, Hammerloks, and master links; and carbon steel forged and stamped products, such as load binders, logging tools, and other securing devices. In addition, it offers power and motion control systems, which comprise AC and DC drive systems, radio remote controls, push button pendant stations, brakes, collision avoidance, and power delivery subsystems, as well as AC and DC digital motion control systems for underground coal mining equipment; industrial components, including mechanical and electromechanical actuators and rotary unions; and overhead steel jib and gantry cranes, and overhead aluminum light rail workstations under the CES, Abell-Howe, and Washington Equipment brands. Further, the company provides DC high-performance elevator drives, AC drives, and regenerative controls; and tire shredders. The company sells its products through its sales force and independent distributors. Columbus McKinnon Corporation was founded in 1875 and is headquartered in Getzville, New York.

Lonking Company Profile

Lonking Holdings Limited, an investment holding company, manufactures and distributes wheel loaders, road rollers, excavators, forklifts, and other construction machinery in Mainland China. The company’s products also include hydraulic excavators, skid steer loaders, motor graders, bulldozers, and stackers. It also develops and produces components, including gearboxes, torque converters, axles, hydraulic components, gear pipes and driver shaft, and other products; and provides loader, excavator, forklift, road machinery, warehouse, and other parts, as well as maintenance and support services. In addition, the company offers finance leasing for construction machinery. Further, it distributes wheel loaders and other machinery; and trades in construction machinery and components. Lonking Holdings Limited was founded in 1993 and is headquartered in Shanghai, the People’s Republic of China.

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