Contrasting Columbus McKinnon (NASDAQ:CMCO) & Toyota Industries (OTCMKTS:TYIDY)

Toyota Industries (OTCMKTS:TYIDY) and Columbus McKinnon (NASDAQ:CMCO) are both industrials companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, valuation, analyst recommendations, earnings and risk.

Dividends

Toyota Industries pays an annual dividend of $96.65 per share and has a dividend yield of 124.0%. Columbus McKinnon pays an annual dividend of $0.28 per share and has a dividend yield of 0.8%. Toyota Industries pays out 27.8% 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.

Insider and Institutional Ownership

0.5% of Toyota Industries 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 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.

Valuation and Earnings

This table compares Toyota Industries and Columbus McKinnon’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Toyota Industries	N/A	N/A	N/A	$347.86	0.22
Columbus McKinnon	$1.02 billion	0.94	$46.62 million	$1.62	20.41

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

Profitability

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

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

Analyst Recommendations

This is a summary of recent ratings and target prices for Toyota Industries and Columbus McKinnon, as reported by MarketBeat.

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

Columbus McKinnon has a consensus price target of $51.50, suggesting a potential upside of 55.78%. Given Columbus McKinnon’s higher possible upside, analysts clearly believe Columbus McKinnon is more favorable than Toyota Industries.

Summary

Columbus McKinnon beats Toyota Industries on 10 of the 12 factors compared between the two stocks.

About Toyota Industries

Toyota Industries Corporation manufactures and sells textiles machinery, materials handling equipment, automobiles, and automobile parts in Japan, the United States, and internationally. The company operates through Automobile, Materials Handling Equipment, and Textile Machinery segments. It provides vehicles; gasoline and diesel engines for automobiles and industrial equipment; turbochargers and foundry parts; car air-conditioning compressors; car electronics comprising DC-DC converters, in-vehicle chargers, on-board chargers and DC-DC converter units, and DC-AC inverters; batteries; and stamping dies, including automotive and lift truck stamping dies. The company also offers counterbalanced lift trucks, electric reach trucks, skid steer loaders, tow tractors, and electric tow tractors; stationary/fixed type racks, nesting pallets, mobile racks, and automated storage and retrieval systems; automatic guided vehicle systems, high speed rail guided vehicle systems, and automatic guided lift and pallet trucks; aerial work platforms; and develops software comprises warehouse management systems, as well as sales financing services. In addition, it provides spinning machines, such as ring spinning and roving frames; air and water jet loom weaving machines; cotton classing instruments; and fiber, yarn, and fabric quality measurement instruments; and leases machinery and vehicles. Toyota Industries Corporation was incorporated in 1926 and is headquartered in Kariya-shi, Japan.

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.