Konecranes (OTCMKTS:KNCRF) vs. Kubota (OTCMKTS:KUBTY) Financial Contrast

Kubota (OTCMKTS:KUBTY) and Konecranes (OTCMKTS:KNCRF) are both industrials companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, risk, valuation, dividends, institutional ownership, profitability and analyst recommendations.

Valuation and Earnings

This table compares Kubota and Konecranes”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kubota	$21.54 billion	0.75	$1.69 billion	$7.12	9.69
Konecranes	N/A	N/A	N/A	$1.15	57.33

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

Analyst Recommendations

This is a summary of recent ratings and target prices for Kubota and Konecranes, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kubota	0	0	0	0	N/A
Konecranes	0	0	0	0	N/A

Institutional and Insider Ownership

0.4% of Kubota shares are owned by institutional investors. Comparatively, 34.9% of Konecranes shares are owned by institutional investors. 0.0% of Kubota shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Kubota and Konecranes’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kubota	8.43%	10.10%	4.55%
Konecranes	N/A	N/A	N/A

Dividends

Kubota pays an annual dividend of $1.26 per share and has a dividend yield of 1.8%. Konecranes pays an annual dividend of $1.05 per share and has a dividend yield of 1.6%. Kubota pays out 17.7% of its earnings in the form of a dividend. Konecranes pays out 91.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kubota is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Kubota beats Konecranes on 8 of the 10 factors compared between the two stocks.

About Kubota

Kubota Corporation manufactures and sells agricultural and construction machinery in Japan, North America, Europe, Asia, and internationally. It operates through three segments: Farm & Machinery, Water & Environment, and Others. The Farm & Machinery segment offers tractors, power tillers, combine harvesters, rice transplanters, turf equipment, utility vehicles, other agricultural machinery, implements, attachments, post-harvest machinery, vegetable production equipment, intermediate management machine, and other equipment; cooperative drying, rice seedling, and gardening facilities; scales, weighing and measuring control systems, and air purifier; engines for farm equipment, construction machinery, industrial machinery, and generators; and mini excavators, wheel and skid steer loaders, compact track loaders, and other construction machinery related products. Its Water & Environment segment provides ductile iron pipes, synthetic pipes, valves, and single stack drain fittings, as well as design and construction services; reformer and cracking tubes, hearth rolls, TXAX materials, and spiral steel pipes; air-conditioning equipment; wastewater treatment equipment and plants, pumps and pump plants, membrane solutions, wastewater purification plants, night-soil treatment plants, waste incinerating and meltingplants, waste shredding and sorting plants, flue gas desulfurization apparatus, membrane methane fermentation plants, wastewater treatment plant, and valves. The Others segment offers logistics services; and roofing and exterior wall materials. It also engages in the underwriting of non-life insurance, retail financing, finance leasing, maintenance, security guarding, and facility management services; and import and export of components for farm equipment, engines, and construction machinery. It serves customers through a network of dealers. Kubota Corporation was founded in 1890 and is headquartered in Osaka, Japan.

About Konecranes

Konecranes Plc manufactures, sells, and services material handling solutions. It operates through three segments: Service, Industrial Equipment, and Port Solutions. The company offers workstation lifting system, overhead cranes, hazardous environment cranes and hoists, warehouse automation, and core of lifting, such as gears, motors, and controls; and provides crane advisory services. It also provides crane inspection and preventive maintenance, predictive maintenance and remote monitoring, corrective maintenance and retrofits, consultation services, modernization services; and parts, such as hook latch triggers and rope guide. In addition, the company offers container handling equipment, mobile harbor cranes, lift trucks, shipyard and bulk handling equipment, and spare parts; and provides operational software and services, port services. It serves automotive, container handling, general manufacturing, intermodal, metal production, mining, nuclear, paper and forest, petroleum and gas, power, shipyards, and waste to energy and biomass sectors. Konecranes Plc was founded in 1910 and is headquartered in Hyvinkää, Finland.