Lindsay (NYSE:LNN – Get Free Report) and L.B. Foster (NASDAQ:FSTR – Get Free Report) are both small-cap industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, profitability and dividends.
Analyst Ratings
This is a summary of recent recommendations for Lindsay and L.B. Foster, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Lindsay | 1 | 2 | 0 | 0 | 1.67 |
| L.B. Foster | 0 | 2 | 2 | 0 | 2.50 |
Lindsay presently has a consensus price target of $113.00, indicating a potential downside of 8.58%. L.B. Foster has a consensus price target of $32.00, indicating a potential downside of 15.83%. Given Lindsay’s higher probable upside, equities analysts clearly believe Lindsay is more favorable than L.B. Foster.
Dividends
Risk and Volatility
Lindsay has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500. Comparatively, L.B. Foster has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500.
Earnings and Valuation
This table compares Lindsay and L.B. Foster”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Lindsay | $627.86 million | 2.00 | $74.05 million | $5.21 | 23.73 |
| L.B. Foster | $558.35 million | 0.72 | $7.55 million | $1.05 | 36.21 |
Lindsay has higher revenue and earnings than L.B. Foster. Lindsay is trading at a lower price-to-earnings ratio than L.B. Foster, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Lindsay and L.B. Foster’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Lindsay | 8.79% | 10.73% | 6.63% |
| L.B. Foster | 2.04% | 7.61% | 4.03% |
Institutional and Insider Ownership
89.9% of Lindsay shares are owned by institutional investors. Comparatively, 80.6% of L.B. Foster shares are owned by institutional investors. 1.8% of Lindsay shares are owned by insiders. Comparatively, 7.6% of L.B. Foster shares are owned 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
Lindsay beats L.B. Foster on 11 of the 17 factors compared between the two stocks.
About Lindsay
Lindsay Corporation, together with its subsidiaries, provides water management and road infrastructure products and services in the United States and internationally. It operates in two segments, Irrigation and Infrastructure. The Irrigation segment manufactures and markets center pivot, lateral move irrigation systems, and irrigation controls under the Zimmatic brand; hose reel travelers under the Perrot brand; and chemical injection systems, variable rate irrigation systems, flow meters, weather stations, soil moisture sensors, and remote monitoring and control systems. It also offers repair and replacement parts for its irrigation systems and controls, and diameter steel tubing; global positioning system positioning and guidance, variable rate irrigation, wireless irrigation management, irrigation scheduling, and smartphone applications; and industrial Internet of Things technology solutions, data acquisition and management systems, and custom electronic equipment for applications under the Elecsys brand. The Infrastructure segment provides Road Zipper System comprised of T-shaped concrete and steel barriers, barrier transfer machine, and variable length barriers which are used for highway reconstruction, paving and resurfacing, road widening, median and shoulder construction, and repairs to tunnels and bridges. Additionally, it offers redirective and non-redirective crash cushions to enhance highway safety at locations such as toll booths, freeway off-ramps, medians and roadside barrier ends, bridge supports, utility poles, and other fixed roadway hazards; specialty barriers; preformed tape and road safety accessory products, as well as rail products, such as signals and lights, structures, foundations, junction boxes, and signs. Lindsay Corporation was founded in 1955 and is headquartered in Omaha, Nebraska.
About L.B. Foster
L.B. Foster Company provides engineered and manufactured products and services for the building and infrastructure projects in the United States, Canada, the United Kingdom, and internationally. It operates through two segments: Rail, Technologies, and Services; and Infrastructure Solutions. The Rail, Technologies, and Services segment offers new rail to passenger and short line freight railroads, industrial companies, and rail contractors, as well as used rails; rail accessories, such as rack spikes, bolts, angle bars, tie plates, and other products; insulated rail joints and related accessories; fixation fasteners, coverboards, and special accessories; and trackwork products. This segment also provides engineered concrete railroad ties, friction management products and application systems, railroad condition monitoring systems and equipment including wheel impact load detection systems, wayside data collection and management systems, and rockfall, flood, earthworks, and bridge strike monitoring; and aftermarket services. The Infrastructure Solutions segment manufactures precast concrete products for use as restrooms, concession stands, and protective storage buildings under the CXT brand for national, state, and municipal parks; and manufactures sounds walls, bridge beams, box culverts, septic tanks, and other custom pre-stressed and precast concrete products. This segment also provides steel bridge products; corrosion protection solutions; concrete-reinforced steel grid decking, open steel grid deck, aluminum bridge railing, and stay-in-place steel bridge forms; cuts, threads, and paints pipe; threading services for water well applications; protective pipeline coating services; and turnkey solutions for metering and injection systems for oil and gas markets. L.B. Foster Company was founded in 1902 and is headquartered in Pittsburgh, Pennsylvania.
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