Lindsay Corporation (LNN) & CNH Global NV (CNH) Critical Analysis

Lindsay Corporation (NYSE: LNN) and CNH Global NV (NYSE:CNH) are both industrial products companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, earnings, analyst recommendations, valuation, profitability, dividends and institutional ownership.

Earnings & Valuation

This table compares Lindsay Corporation and CNH Global NV’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Lindsay Corporation $517.98 million 1.92 $23.17 million $2.16 42.98
CNH Global NV N/A N/A N/A $5.40 N/A

Lindsay Corporation has higher revenue and earnings than CNH Global NV. CNH Global NV is trading at a lower price-to-earnings ratio than Lindsay Corporation, indicating that it is currently the more affordable of the two stocks.

Dividends

Lindsay Corporation pays an annual dividend of $1.20 per share and has a dividend yield of 1.3%. CNH Global NV does not pay a dividend. Lindsay Corporation pays out 55.6% of its earnings in the form of a dividend. Lindsay Corporation has increased its dividend for 14 consecutive years.

Analyst Ratings

This is a summary of current ratings for Lindsay Corporation and CNH Global NV, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lindsay Corporation 0 3 1 0 2.25
CNH Global NV 0 0 0 0 N/A

Lindsay Corporation currently has a consensus price target of $92.33, suggesting a potential downside of 0.54%.

Insider and Institutional Ownership

93.7% of Lindsay Corporation shares are owned by institutional investors. 3.1% of Lindsay Corporation shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Lindsay Corporation and CNH Global NV’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lindsay Corporation 4.47% 8.95% 4.66%
CNH Global NV N/A N/A N/A

Summary

Lindsay Corporation beats CNH Global NV on 9 of the 11 factors compared between the two stocks.

About Lindsay Corporation

Lindsay Corporation, along with its subsidiaries, provides a range of water management and road infrastructure products and services. The Company operates through two segments: Irrigation Segment and Infrastructure Segment. The Irrigation Segment includes the manufacture and marketing of center pivot, lateral move, and hose reel irrigation systems, which are used primarily in the agricultural industry. The Infrastructure Segment includes the manufacture and marketing of moveable barriers, specialty barriers, crash cushions and end terminals, road marking and road safety equipment, large diameter steel tubing, and railroad signals and structures. It also manufactures and markets hose reel travelers under the Perrot and Greenfield brands in Europe and South Africa. It produces or markets chemical injection systems, variable rate irrigation systems, flow meters, weather stations, soil moisture sensors, and remote monitoring and control systems, which it sells under its GrowSmart brand.

About CNH Global NV

CNH Global N.V. (CNH) is a global, full-line company in both the agricultural and construction equipment industries. The Company organizes its operations into three business segments: agricultural equipment, construction equipment and financial services. The Company markets its products globally through its two brand families, Case and New Holland. Case IH (along with Steyr in Europe) and New Holland make up its agricultural brand family. Case and New Holland Construction (along with Kobelco in North America) make up its construction equipment brand family. During the year ended December 31, 2012, the Company was manufacturing its products in 37 facilities globally and distributing its products in approximately 170 countries through a network of approximately 11,500 dealers and distributors.

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