Komatsu (OTCMKTS:KMTUY – Get Free Report) and Ampco-Pittsburgh (NYSE:AP – Get Free Report) are both industrials companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, earnings, analyst recommendations, profitability and risk.
Dividends
Komatsu pays an annual dividend of $0.89 per share and has a dividend yield of 2.3%. Ampco-Pittsburgh pays an annual dividend of $0.36 per share and has a dividend yield of 5.9%. Komatsu pays out 32.0% of its earnings in the form of a dividend. Ampco-Pittsburgh pays out -12.3% 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. Ampco-Pittsburgh is clearly the better dividend stock, given its higher yield and lower payout ratio.
Profitability
This table compares Komatsu and Ampco-Pittsburgh’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Komatsu | 8.92% | 10.56% | 5.94% |
| Ampco-Pittsburgh | -13.84% | -3.53% | -0.38% |
Earnings and Valuation
This table compares Komatsu and Ampco-Pittsburgh”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Komatsu | $27.45 billion | 1.30 | $2.48 billion | $2.78 | 13.83 |
| Ampco-Pittsburgh | $428.04 million | 0.29 | -$66.07 million | ($2.93) | -2.07 |
Komatsu has higher revenue and earnings than Ampco-Pittsburgh. Ampco-Pittsburgh is trading at a lower price-to-earnings ratio than Komatsu, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings for Komatsu and Ampco-Pittsburgh, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Komatsu | 0 | 1 | 0 | 2 | 3.33 |
| Ampco-Pittsburgh | 1 | 0 | 0 | 0 | 1.00 |
Risk & Volatility
Komatsu has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500. Comparatively, Ampco-Pittsburgh has a beta of 1.34, suggesting that its share price is 34% more volatile than the S&P 500.
Institutional & Insider Ownership
0.2% of Komatsu shares are held by institutional investors. Comparatively, 49.2% of Ampco-Pittsburgh shares are held by institutional investors. 2.9% of Komatsu shares are held by insiders. Comparatively, 23.5% of Ampco-Pittsburgh shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Summary
Komatsu beats Ampco-Pittsburgh on 10 of the 15 factors compared between the two stocks.
About Komatsu
Komatsu Ltd. manufactures and sells construction, mining, and utility equipment in Japan, the Americas, Europe, China, Rest of Asia, Oceania, the Middle East, Africa, and CIS countries. It operates through three segments: Construction, Mining and Utility Equipment; Retail Finance; and Industrial Machinery and Others. The company offers construction and mining equipment, including excavators, wheel loaders, bulldozers, motor graders, dump truck, rope and hybrid shovels, electric wheel loaders, continuous miners, and jumbo drills. It also provides forestry equipment, including harvesters, forwarders, feller bunchers, excavators, mini excavators, and forklifts; demolition, waste, and recycling equipment, such as mobile crushers, hydraulic excavators, wheel loaders, and mini shovels; material handling equipment; and tunnel-boring machines, pipe layers, towing tractors, and engines. In addition, the company offers industrial machinery, including presses, sheet-metal machinery, 3D laser cutting machine, transfer machines, battery manufacturing equipment, wire saws, thermos modules, thermoelectric generation module, and temperature control products; quarry equipment; agricultural and livestock equipment; EH sensor device; iron and steel casting products; and logistics equipment. Further, the company provides retail financing; construction machinery rental services; remanufactured products; other support services; transportation, warehousing, packing, and other services; and purchases and sells used equipment. Komatsu Ltd. was founded in 1884 and is headquartered in Tokyo, Japan.
About Ampco-Pittsburgh
Ampco-Pittsburgh Corporation, together with its subsidiaries, engages in manufacture and sale of specialty metal products and customized equipment to commercial and industrial users worldwide. The company operates through Forged and Cast Engineered Products (FCEP); and Air and Liquid Processing (ALP) segments. The FCEP segment produces forged hardened steel rolls, cast rolls and, forged engineered products that are used in cold rolling mills by producers of steel, aluminum, and other metals; cast rolls for hot strip mills, medium/heavy section mills, roughing mills, and plate mills; and forged engineered products for narrow and wide strip and aluminum mills, back-up rolls for narrow strip mills, and leveling rolls and shafts. The ALP segment produces custom-engineered finned tube heat exchange coils and related heat transfer products for various industries, including OEM/commercial, nuclear power generation, and industrial manufacturing; custom-designed air handling systems for institutional, pharmaceutical, and general industrial building markets; and manufacture centrifugal pumps for the fossil fueled power generation, marine defense, and industrial refrigeration industries. Ampco-Pittsburgh Corporation was incorporated in 1929 and is headquartered in Carnegie, Pennsylvania.
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