Lindsay (NYSE:LNN) vs. Kawasaki Heavy Industries (OTCMKTS:KWHIY) Head-To-Head Survey

Kawasaki Heavy Industries (OTCMKTS:KWHIY) and Lindsay (NYSE:LNN) are both industrials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, profitability, risk, valuation and earnings.

Earnings & Valuation

This table compares Kawasaki Heavy Industries and Lindsay”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kawasaki Heavy Industries	$15.35 billion	0.86	$713.84 million	$0.26	23.04
Lindsay	$676.37 million	1.70	$74.05 million	$5.21	21.65

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

Dividends

Kawasaki Heavy Industries pays an annual dividend of $0.06 per share and has a dividend yield of 1.0%. Lindsay pays an annual dividend of $1.52 per share and has a dividend yield of 1.3%. Kawasaki Heavy Industries pays out 23.1% of its earnings in the form of a dividend. Lindsay pays out 29.2% 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. Lindsay has increased its dividend for 22 consecutive years. Lindsay is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Kawasaki Heavy Industries and Lindsay, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kawasaki Heavy Industries	0	3	0	0	2.00
Lindsay	1	2	0	0	1.67

Lindsay has a consensus target price of $121.00, indicating a potential upside of 7.28%. Given Lindsay’s higher probable upside, analysts clearly believe Lindsay is more favorable than Kawasaki Heavy Industries.

Profitability

This table compares Kawasaki Heavy Industries and Lindsay’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kawasaki Heavy Industries	4.74%	13.40%	3.49%
Lindsay	8.79%	10.73%	6.63%

Institutional & Insider Ownership

89.9% of Lindsay shares are owned by institutional investors. 1.8% of Lindsay shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility & Risk

Kawasaki Heavy Industries has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500. Comparatively, Lindsay has a beta of 0.7, suggesting that its stock price is 30% less volatile than the S&P 500.

Summary

Lindsay beats Kawasaki Heavy Industries on 9 of the 16 factors compared between the two stocks.

About Kawasaki Heavy Industries

Kawasaki Heavy Industries, Ltd. engages in aerospace systems, energy solution and marine engineering, precision machinery and robot, rolling stock, and motorcycle and engine businesses in Japan and internationally. It manufactures aircraft for the Japan ministry of defense; helicopters; and helicopter and jet engines for commercial aircrafts. The company also manufactures railway cars; a range of rolling stocks, including Shinkansen, electric cars, passenger coaches, freight cars, locomotives, diesel locomotives, and transit systems. In addition, it engages in the production and sale of energy-related machinery and systems, marine machinery and systems, industrial equipment, and environmental equipment. Further, the company manufactures and supplies motorcycles, off-road four wheelers, watercrafts, general-purpose gasoline engines, etc. Additionally, it manufactures and sells pumps, motors, valves, and various hydraulic machinery, as well as assembles hydraulic systems; and industrial robots for use in welding, assembly, handling, painting, and palletization for various industries, including automotive and electronics industries. The company was founded in 1878 and is headquartered in Tokyo, Japan.

About Lindsay

Lindsay Corporation, together with its subsidiaries, provides water management and road infrastructure products and services in the United States and internationally. It operates in two segments, Irrigation and Infrastructure. The Irrigation segment manufactures and markets center pivot, lateral move irrigation systems, and irrigation controls under the Zimmatic brand; hose reel travelers under the Perrot brand; and chemical injection systems, variable rate irrigation systems, flow meters, weather stations, soil moisture sensors, and remote monitoring and control systems. It also offers repair and replacement parts for its irrigation systems and controls, and diameter steel tubing; global positioning system positioning and guidance, variable rate irrigation, wireless irrigation management, irrigation scheduling, and smartphone applications; and industrial Internet of Things technology solutions, data acquisition and management systems, and custom electronic equipment for applications under the Elecsys brand. The Infrastructure segment provides Road Zipper System comprised of T-shaped concrete and steel barriers, barrier transfer machine, and variable length barriers which are used for highway reconstruction, paving and resurfacing, road widening, median and shoulder construction, and repairs to tunnels and bridges. Additionally, it offers redirective and non-redirective crash cushions to enhance highway safety at locations such as toll booths, freeway off-ramps, medians and roadside barrier ends, bridge supports, utility poles, and other fixed roadway hazards; specialty barriers; preformed tape and road safety accessory products, as well as rail products, such as signals and lights, structures, foundations, junction boxes, and signs. Lindsay Corporation was founded in 1955 and is headquartered in Omaha, Nebraska.