Critical Survey: Wacker Neuson (OTCMKTS:WKRCF) versus Ag Growth International (OTCMKTS:AGGZF)

Ag Growth International (OTCMKTS:AGGZF) and Wacker Neuson (OTCMKTS:WKRCF) are both industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, risk, institutional ownership, valuation, dividends and profitability.

Profitability

This table compares Ag Growth International and Wacker Neuson’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ag Growth International	N/A	N/A	N/A
Wacker Neuson	N/A	N/A	N/A

Institutional & Insider Ownership

56.8% of Ag Growth International shares are owned by institutional investors. Comparatively, 7.2% of Wacker Neuson shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations for Ag Growth International and Wacker Neuson, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ag Growth International	0	0	2	0	3.00
Wacker Neuson	0	0	0	0	0.00

Ag Growth International currently has a consensus target price of $62.00, indicating a potential upside of 155.67%. Given Ag Growth International’s stronger consensus rating and higher probable upside, equities analysts clearly believe Ag Growth International is more favorable than Wacker Neuson.

Dividends

Ag Growth International pays an annual dividend of $1.40 per share and has a dividend yield of 5.8%. Wacker Neuson pays an annual dividend of $0.40 per share and has a dividend yield of 1.8%. Ag Growth International pays out 77.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Wacker Neuson pays out 31.8% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares Ag Growth International and Wacker Neuson”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ag Growth International	N/A	N/A	N/A	$1.80	13.44
Wacker Neuson	N/A	N/A	N/A	$1.26	17.31

Ag Growth International is trading at a lower price-to-earnings ratio than Wacker Neuson, indicating that it is currently the more affordable of the two stocks.

Summary

Ag Growth International beats Wacker Neuson on 6 of the 8 factors compared between the two stocks.

About Ag Growth International

Ag Growth International Inc., together with its subsidiaries, manufactures and sells equipment for the agriculture industry in Canada, the United States, and internationally. It operates through Farm and Commercial segments. The company offers grain, bolted, hopper, and smooth wall bins; temporary storage; unloads and sweeps systems; water tanks; secondary containment systems; fuel tanks; and storage accessories, as well as mixed flow dryers; fans and heaters; aeration products; vents and exhausters; and stirring systems. It also provides portable handling equipment, such as augers, conveyors, grain vacs, post pounders, seed treaters, and related accessories; permanent handling equipment, such as bucket elevators, chain and belt conveyors, distributors, feed handling, screw feeders and conveyors, and spouts and connectors. In addition, the company offers towers, catwalks, and ladders, as well as all-steel buildings; batch blenders, bulk scales, declining weight blenders, vertical blenders, micro-dosing systems, mixers, and milling equipment; and controllers, hazard monitoring, and monitoring and automation equipment. Its products are used in port facilities, inland grain terminals, corporate farms, fertilizer distribution sites, ethanol production, oilseed crushing, commercial feed mills, rice mills, and flour mills. The company serves farmers, agribusinesses, grain handlers, regional cooperatives, contractors, food and animal feed manufacturers, and fertilizer blenders and distributors. Ag Growth International Inc. was founded in 1996 and is based in Winnipeg, Canada.

About Wacker Neuson

Wacker Neuson SE manufactures and distributes light and compact equipment in Germany, Austria, the United States, and internationally. It operates through three segments: Light Equipment, Compact Equipment, and Services. The company provides internal and external vibrators for concrete compaction; rammers; vibratory plates; rollers for soil compaction; demolition and light products; generators; pumps; and heaters. It also offers compact equipment, including excavators, wheel loaders, telescopic wheel loaders, skid steer loaders, telehandlers, wheel and track dumpers, and backhoe loaders, as well as related product attachments and accessories. In addition, the company provides repair and maintenance services; spare parts; used equipment, financing, telematics, training, e-business, and rental solutions; digital service solutions; and sells third-party equipment, including resale of trade-ins. It distributes its products and services under the Wacker Neuson, Kramer, Weidemann, Enar, Battery One, and SEQUELLO brand names. The company serves construction, gardening and landscaping, agricultural, municipal, recycling, rail transport, and manufacturing industries. Wacker Neuson SE was founded in 1848 and is headquartered in Munich, Germany.