Lindsay Corporation (NYSE:LNN) versus Deere & (DE) Head-To-Head Analysis

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

Valuation and Earnings

This table compares Lindsay Corporation and Deere &’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Lindsay Corporation $518.94 million 1.78 $57.11 million $2.30 37.53
Deere & $26.78 billion 1.51 $3.98 billion $5.55 22.83

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

Volatility & Risk

Lindsay Corporation has a beta of 0.43, meaning that its stock price is 57% less volatile than the S&P 500. Comparatively, Deere & has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500.

Dividends

Lindsay Corporation pays an annual dividend of $1.16 per share and has a dividend yield of 1.3%. Deere & pays an annual dividend of $2.40 per share and has a dividend yield of 1.9%. Lindsay Corporation pays out 50.4% of its earnings in the form of a dividend. Deere & pays out 43.2% 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. Lindsay Corporation has raised its dividend for 14 consecutive years. Deere & is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of recent recommendations for Lindsay Corporation and Deere &, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lindsay Corporation 0 3 1 0 2.25
Deere & 3 12 10 0 2.28

Lindsay Corporation currently has a consensus price target of $87.67, suggesting a potential upside of 1.56%. Deere & has a consensus price target of $122.99, suggesting a potential downside of 2.93%. Given Lindsay Corporation’s higher possible upside, equities research analysts clearly believe Lindsay Corporation is more favorable than Deere &.

Institutional & Insider Ownership

67.4% of Deere & shares are held by institutional investors. 3.1% of Lindsay Corporation shares are held by company insiders. Comparatively, 0.9% of Deere & shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Lindsay Corporation and Deere &’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lindsay Corporation 4.75% 9.69% 4.97%
Deere & 6.52% 24.85% 3.05%

Summary

Deere & beats Lindsay Corporation on 11 of the 17 factors compared between the two stocks.

Lindsay Corporation Company Profile

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.

Deere & Company Profile

Deere & Company is engaged in equipment operations. The Company is engaged in providing financial services. The Company operates through three business segments: agriculture and turf, construction and forestry, and financial services. The agriculture and turf segment manufactures and distributes a line of agriculture and turf equipment and related service parts. The construction and forestry segment provides a line of construction equipment, and forestry machines and attachments available in the world. The construction and forestry segment is also engaged in providing fleet management telematics solutions. The financial services segment primarily finances sales and leases by the Company dealers of new and used agriculture and turf equipment and construction and forestry equipment. The financial services segment also provides wholesale financing to dealers of the foregoing equipment, finances retail revolving charge accounts and offers extended equipment warranties.

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