Astec Industries (NASDAQ:ASTE – Get Free Report) and Valmont Industries (NYSE:VMI – Get Free Report) are both industrials companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, risk, dividends, institutional ownership, profitability and analyst recommendations.
Insider & Institutional Ownership
93.2% of Astec Industries shares are owned by institutional investors. Comparatively, 87.8% of Valmont Industries shares are owned by institutional investors. 1.0% of Astec Industries shares are owned by company insiders. Comparatively, 1.4% of Valmont Industries shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Dividends
Astec Industries pays an annual dividend of $0.52 per share and has a dividend yield of 1.3%. Valmont Industries pays an annual dividend of $3.08 per share and has a dividend yield of 0.7%. Astec Industries pays out 104.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Valmont Industries pays out 11.4% of its earnings in the form of a dividend. Valmont Industries has increased its dividend for 1 consecutive years.
Risk and Volatility
Astec Industries has a beta of 1.37, meaning that its stock price is 37% more volatile than the S&P 500. Comparatively, Valmont Industries has a beta of 1.39, meaning that its stock price is 39% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Astec Industries and Valmont Industries, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Astec Industries | 1 | 1 | 1 | 2 | 2.80 |
| Valmont Industries | 0 | 3 | 3 | 0 | 2.50 |
Astec Industries currently has a consensus target price of $52.00, suggesting a potential upside of 34.58%. Valmont Industries has a consensus target price of $587.00, suggesting a potential upside of 39.03%. Given Valmont Industries’ higher probable upside, analysts clearly believe Valmont Industries is more favorable than Astec Industries.
Profitability
This table compares Astec Industries and Valmont Industries’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Astec Industries | 0.74% | 8.60% | 4.16% |
| Valmont Industries | 12.05% | 26.25% | 12.92% |
Valuation and Earnings
This table compares Astec Industries and Valmont Industries”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Astec Industries | $1.41 billion | 0.63 | $38.80 million | $0.50 | 77.28 |
| Valmont Industries | $4.10 billion | 1.97 | $334.78 million | $26.94 | 15.67 |
Valmont Industries has higher revenue and earnings than Astec Industries. Valmont Industries is trading at a lower price-to-earnings ratio than Astec Industries, indicating that it is currently the more affordable of the two stocks.
Summary
Valmont Industries beats Astec Industries on 14 of the 18 factors compared between the two stocks.
About Astec Industries
Astec Industries is a manufacturer of equipment and services for the infrastructure, road construction and aggregate industries. Its products support the production and handling of asphalt, concrete and crushed stone, as well as the construction and maintenance of roads. The company’s offerings include asphalt production plants, roadbuilding equipment, crushers, screens, material washing systems and concrete batch plants. Astec also provides parts, service and other support for its equipment. Founded in 1972 and headquartered in Chattanooga, Tennessee, Astec serves customers in the United States and international markets.
About Valmont Industries
Valmont Industries designs and manufactures products used in infrastructure and agriculture. Founded in 1946, the company has grown from a maker of steel irrigation equipment into a global provider of engineered products and services. Its infrastructure business supplies utility structures, poles and towers, lighting and traffic products, telecommunications structures, and protective coatings. These products support electric power, transportation, communications, and other infrastructure markets.
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