GUD (OTCMKTS:GUDHF – Get Free Report) and Douglas Dynamics (NYSE:PLOW – Get Free Report) are both consumer cyclical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, dividends, risk, profitability, earnings and institutional ownership.
Earnings and Valuation
This table compares GUD and Douglas Dynamics”s revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
GUD | N/A | N/A | N/A | C$0.42 | 16.71 |
Douglas Dynamics | $568.18 million | 1.12 | $23.72 million | $1.17 | 23.56 |
Douglas Dynamics has higher revenue and earnings than GUD. GUD is trading at a lower price-to-earnings ratio than Douglas Dynamics, indicating that it is currently the more affordable of the two stocks.
Dividends
Institutional and Insider Ownership
16.5% of GUD shares are owned by institutional investors. Comparatively, 91.9% of Douglas Dynamics shares are owned by institutional investors. 2.5% of Douglas Dynamics shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares GUD and Douglas Dynamics’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
GUD | N/A | N/A | N/A |
Douglas Dynamics | 5.03% | 13.38% | 5.02% |
Analyst Recommendations
This is a breakdown of recent ratings and target prices for GUD and Douglas Dynamics, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
GUD | 0 | 0 | 0 | 0 | N/A |
Douglas Dynamics | 0 | 1 | 1 | 0 | 2.50 |
Douglas Dynamics has a consensus target price of $28.00, suggesting a potential upside of 1.60%. Given Douglas Dynamics’ higher probable upside, analysts clearly believe Douglas Dynamics is more favorable than GUD.
Summary
Douglas Dynamics beats GUD on 11 of the 13 factors compared between the two stocks.
About GUD
GUD Holdings Limited, through its subsidiaries, manufactures, imports, distributes, and sells automotive products in Australia, New Zealand, Thailand, South Korea, France, and the United States. It operates through Automotive, Auto Pacific Group (APG), and Davey segments. The Automotive segment offers automotive and heavy-duty filters for cars, trucks, and agricultural and mining equipment; automotive electrical and lighting products; and fuel pumps and associated products and accessories for the automotive after-market. The APG segment manufactures and markets towing, trailering, functional accessories, and associated products for the automotive aftermarket and original equipment manufacturer customers. The Davey segment provides pumps and pressure systems for household and farm water; water transfer pumps; swimming pool products; spa bath controllers; and pumps and water purification equipment. The company was incorporated in 1958 and is based in Altona North, Australia.
About Douglas Dynamics
Douglas Dynamics, Inc. operates as a manufacturer and upfitter of commercial work truck attachments and equipment in North America. It operates through two segments, Work Truck Attachments and Work Truck Solutions. The Work Truck Attachments segment manufactures and sells snow and ice control attachments, including snowplows, and sand and salt spreaders for light trucks and heavy duty trucks, as well as various related parts and accessories. The Work Truck Solutions segment primarily manufactures municipal snow and ice control products; provides truck and vehicle upfits where it attaches component pieces of equipment, truck bodies, racking, and storage solutions to a vehicle chassis for use by end users for work related purposes; and manufactures storage solutions for trucks and vans, and cable pulling equipment for trucks. This segment also offers up-fit and storage solutions. It also provides customized turnkey solutions to governmental agencies, such as Departments of Transportation and municipalities. The company sells its products under the FISHER, SNOWEX, WESTERN, TURFEX, SWEEPEX, HENDERSON, BRINEXTREME, and DEJANA brands. It distributes its products primarily to professional snowplowers who are contracted to remove snow and ice from commercial and residential areas. The company was founded in 1948 and is headquartered in Milwaukee, Wisconsin.
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