Columbus McKinnon (NASDAQ:CMCO) & Cargotec (OTCMKTS:CYJBF) Financial Comparison

Cargotec (OTCMKTS:CYJBF) and Columbus McKinnon (NASDAQ:CMCO) are both industrials companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, earnings, analyst recommendations, valuation, dividends and institutional ownership.

Valuation & Earnings

This table compares Cargotec and Columbus McKinnon’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cargotec	N/A	N/A	N/A	$0.60	139.32
Columbus McKinnon	$1.02 billion	0.93	$46.62 million	$1.62	20.30

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

Dividends

Cargotec pays an annual dividend of $0.42 per share and has a dividend yield of 0.5%. Columbus McKinnon pays an annual dividend of $0.28 per share and has a dividend yield of 0.9%. Cargotec pays out 70.0% of its earnings in the form of a dividend. Columbus McKinnon pays out 17.3% 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. Columbus McKinnon is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

18.1% of Cargotec shares are held by institutional investors. Comparatively, 96.0% of Columbus McKinnon shares are held by institutional investors. 2.0% of Columbus McKinnon shares are held 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cargotec	N/A	N/A	N/A
Columbus McKinnon	4.52%	9.50%	4.56%

Analyst Ratings

This is a summary of current recommendations and price targets for Cargotec and Columbus McKinnon, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cargotec	0	0	0	0	N/A
Columbus McKinnon	0	0	2	0	3.00

Columbus McKinnon has a consensus target price of $51.50, suggesting a potential upside of 56.63%. Given Columbus McKinnon’s higher possible upside, analysts clearly believe Columbus McKinnon is more favorable than Cargotec.

Summary

Columbus McKinnon beats Cargotec on 11 of the 12 factors compared between the two stocks.

About Cargotec

Cargotec Corporation provides cargo handling solutions and services in Finland, Europe, the Middle East, Africa, the United States, rest of the Americas, China, and rest of Asia-Pacific countries. It operates in three segments: Kalmar, Hiab, and MacGregor. The Kalmar segment offers cargo handling equipment and automated terminal solutions, software, and support services for ports, terminals, distribution centers, and heavy industry. Its product portfolio includes straddle and shuttle carriers, reach stackers, empty container handlers, terminal tractors, and forklift trucks; maintenance contracts, technical support, spare parts, training, equipment modernization services, and digital solutions; and Bromma spreaders. The Hiab segment provides load handling equipment under the HIAB, EFFER, and ARGOS brands; forestry and recycling cranes under the LOGLIFT and JONSERED brands; truck mounted forklifts under the MOFFETT and PRINCETON brands; skip loaders and hook lifts under the MULTILIFT brand; tail lifts under the ZEPRO, DEL, and WALTCO brands; ProCare services; HiVision crane operating systems; and HiConnect platform. The MacGregor segment offers maritime cargo and load handling products, services, and solutions. Cargotec Corporation was incorporated in 2005 and is headquartered in Helsinki, Finland.

About Columbus McKinnon

Columbus McKinnon Corporation designs, manufactures, and markets motion solutions for moving, lifting, positioning, and securing materials worldwide. It offers manual, battery, electric, and air hoists; steel, rack, and pinion jacks; winches, hydraulic jacks and tools, trolleys and its clamps, and lifting tables; skates and heavy load moving systems; material handling equipment; mobile, workplace, and jib cranes; crane components and kits; and below-the-hook lifting devices, lifting slings, and lashing systems. The company also provides linear motion products, elevator and mining drives, brakes, radio controls, collision avoidance systems, regenerative drives, AC and DC drive and motor control systems, DC motor and magnet control systems, and conductor bar systems; and underfloor lifting systems, lifting jacks, roof working platforms, hybrid lifting systems, turntables, bogie axle exchange and lifting systems, bogie lift and turn devices, and workshop equipment. In addition, it offers fabric and modular belt, and sanitary, stainless steel conveyors; pallet systems; parts and belts; rotary unions and swivel joints; check valves; accumulation and transfer tables, motion control systems, and steel and flexible chains; hooks, shackles, textile slings, clamps, and load binders; actuators and rotary unions; and push button pendant stations, collision avoidance, and power delivery subsystems. It serves EV production and aerospace, energy and utilities, process industries, industrial automation, construction and infrastructure, food and beverage, entertainment, life sciences, consumer packaged goods, and e-commerce/supply chain/warehousing markets. It offers its products to end users directly, and through distributors, independent crane builders, material handling specialists and integrators, original equipment manufacturers, government agencies, and engineering procurement and construction firms. The company was founded in 1875 and is based in Charlotte, North Carolina.