Reviewing Art’s-Way Manufacturing (ARTW) and Its Rivals

Art’s-Way Manufacturing (NASDAQ:ARTW) is one of 437 publicly-traded companies in the “Machinery” industry, but how does it compare to its peers? We will compare Art’s-Way Manufacturing to related companies based on the strength of its valuation, institutional ownership, risk, dividends, analyst recommendations, earnings and profitability.

Volatility & Risk

Art’s-Way Manufacturing has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500. Comparatively, Art’s-Way Manufacturing’s peers have a beta of 4.49, suggesting that their average share price is 349% more volatile than the S&P 500.

Dividends

Art’s-Way Manufacturing pays an annual dividend of $0.05 per share and has a dividend yield of 2.0%. Art’s-Way Manufacturing pays out -500.0% of its earnings in the form of a dividend. As a group, “Machinery” companies pay a dividend yield of 2.3% and pay out 27.3% of their earnings in the form of a dividend.

Profitability

This table compares Art’s-Way Manufacturing and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Art’s-Way Manufacturing	-0.08%	-0.16%	-0.10%
Art’s-Way Manufacturing Competitors	-1,939.20%	-13.06%	0.69%

Valuation and Earnings

This table compares Art’s-Way Manufacturing and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Art’s-Way Manufacturing	$25.99 million	$1.03 million	-256.00
Art’s-Way Manufacturing Competitors	$4.51 billion	$346.97 million	-12.12

Art’s-Way Manufacturing’s peers have higher revenue and earnings than Art’s-Way Manufacturing. Art’s-Way Manufacturing is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Art’s-Way Manufacturing and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Art’s-Way Manufacturing	1	0	0	0	1.00
Art’s-Way Manufacturing Competitors	4056	14457	17875	771	2.41

As a group, “Machinery” companies have a potential upside of 25.71%. Given Art’s-Way Manufacturing’s peers stronger consensus rating and higher possible upside, analysts plainly believe Art’s-Way Manufacturing has less favorable growth aspects than its peers.

Insider and Institutional Ownership

2.9% of Art’s-Way Manufacturing shares are held by institutional investors. Comparatively, 52.6% of shares of all “Machinery” companies are held by institutional investors. 51.5% of Art’s-Way Manufacturing shares are held by insiders. Comparatively, 13.8% of shares of all “Machinery” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Art’s-Way Manufacturing peers beat Art’s-Way Manufacturing on 11 of the 15 factors compared.

About Art’s-Way Manufacturing

Art’s-Way Manufacturing Co., Inc. manufactures and distributes farm equipment products. It operates through the Agricultural Products, and Modular Buildings segments. The Agricultural Products segment manufactures a variety of specialized farm machinery under its own label including portable and stationary animal feed processing equipment and related attachments used to mill and mix feed grains into custom animal feed rations, a line of forage equipment consisting of forage boxes, bale processors, running gear, and dump boxes, a line of manure spreaders, sugar beet harvesting equipment, and a line of dirt work equipment. The Modular Buildings segment produces and sells modular buildings, which are custom designed to meet the specific research needs of its customers. It also provides services relating to the design, manufacturing, delivery, installation and renting of the building units that it produces. The company was founded by Arthur Luscombe in 1956 and is headquartered in Armstrong, IA.