Head-To-Head Analysis: Wartsila (OTCMKTS:WRTBY) & Manitowoc (NYSE:MTW)

Manitowoc (NYSE:MTW) and Wartsila (OTCMKTS:WRTBY) are both industrials companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, profitability, institutional ownership, risk and valuation.

Institutional & Insider Ownership

78.7% of Manitowoc shares are held by institutional investors. 4.0% of Manitowoc shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Manitowoc has a beta of 1.77, meaning that its stock price is 77% more volatile than the S&P 500. Comparatively, Wartsila has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Manitowoc and Wartsila, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Manitowoc	2	1	0	0	1.33
Wartsila	3	4	0	0	1.57

Manitowoc presently has a consensus target price of $14.00, indicating a potential downside of 26.12%. Given Manitowoc’s higher possible upside, equities research analysts clearly believe Manitowoc is more favorable than Wartsila.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Manitowoc	0.87%	3.86%	1.43%
Wartsila	9.77%	25.56%	8.08%

Earnings & Valuation

This table compares Manitowoc and Wartsila”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Manitowoc	$2.24 billion	0.30	$7.20 million	$0.55	34.45
Wartsila	$7.82 billion	2.42	$708.26 million	$0.26	24.62

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

Summary

Wartsila beats Manitowoc on 7 of the 13 factors compared between the two stocks.

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.

About Wartsila

Wärtsilä Oyj Abp offers technologies and lifecycle solutions for the marine and energy markets worldwide. It offers engine power plant products, such as gas, multi-fuel, and diesel engines; GEMS Digital Energy Platform, a smart software platform that monitors, controls, and optimizes energy assets on site and portfolio levels; GridSolv Quantum, a fully integrated energy storage solution, which enables ease of deployment and sustainable energy optimization; GEMS Power Plant Controllers; GEMS Fleet Director, which provides centralized real-time visibility into a global fleet of power plants; and GEMS Grid Controller that conducts intelligent grid control and optimized power management for microgrids of various sizes. The company also provides GEMS smart energy management software platform to remotely monitor, operate, identify, and diagnose assets; lifecycle solutions for power plants; power and propulsion products, such as electric shipping and hybrid ships, engine and generating sets, propulsors and gears, and shaft line solutions; liquid and gas handling products, including ballast water management, freshwater generation, waste and wastewater treatment, gas solutions, and exhaust treatment equipment; port and fleet optimization; simulation and training solutions; and automation, navigation, and control systems. The company was founded in 1834 and is headquartered in Helsinki, Finland.