Head to Head Comparison: Arcosa (ACA) versus Lindsay (LNN)

Arcosa (NYSE:ACA) and Lindsay (NYSE:LNN) are both small-cap construction companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, earnings, risk, dividends, analyst recommendations and profitability.

Dividends

Lindsay pays an annual dividend of $1.24 per share and has a dividend yield of 1.3%. Arcosa does not pay a dividend. Lindsay pays out 42.2% of its earnings in the form of a dividend. Lindsay has raised its dividend for 15 consecutive years.

Institutional & Insider Ownership

98.7% of Lindsay shares are held by institutional investors. 1.1% of Lindsay shares are held by company 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.

Valuation and Earnings

This table compares Arcosa and Lindsay’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Arcosa N/A N/A N/A N/A N/A
Lindsay $547.71 million 1.90 $20.27 million $2.94 33.06

Lindsay has higher revenue and earnings than Arcosa.

Analyst Ratings

This is a summary of recent recommendations for Arcosa and Lindsay, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Arcosa 0 0 2 0 3.00
Lindsay 1 3 1 0 2.00

Arcosa currently has a consensus target price of $43.50, suggesting a potential upside of 65.21%. Lindsay has a consensus target price of $91.00, suggesting a potential downside of 6.37%. Given Arcosa’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Arcosa is more favorable than Lindsay.

Profitability

This table compares Arcosa and Lindsay’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Arcosa N/A N/A N/A
Lindsay 3.70% 11.53% 6.18%

Summary

Lindsay beats Arcosa on 8 of the 12 factors compared between the two stocks.

Arcosa Company Profile

Arcosa, Inc. manufactures and sells infrastructure-related products and services for the construction, energy, and transportation markets. It operates through three segments: Construction Products Group, Energy Equipment Group, and Transportation Products Group. The Construction Products Group segment offers lightweight and natural construction aggregates, and trench shields and shoring products that are used in construction landscape, including commercial, industrial, road and bridge, and underground construction. It serves concrete producers; commercial, residential, industrial, and highway contractors; manufacturers of masonry products; state and local governments; and equipment rental dealers. The Energy Equipment Group segment provides structural wind towers for wind turbine producers; steel utility structures for electricity transmission and distribution; and pressurized and non-pressurized storage and distribution containers that store and transport various products, such as propane, anhydrous ammonia, and natural gas liquids. The Transportation Products Group segment offers hopper barges, tank barges, fiberglass covers, hatches, castings, and winches for commercial marine transportation companies and industrial shippers; axles, circular forgings, and coupling devices for freight, tank, locomotive, and passenger rail transportation equipment, as well as for other industrial uses; and cast components for use in the industrial and mining sectors. The company is headquartered in Dallas, Texas.

Lindsay Company Profile

Lindsay Corporation, together with its subsidiaries, provides water management and road infrastructure products and services in the United States and internationally. The company's Irrigation segment manufactures and markets center pivot, lateral move irrigation systems, and irrigation controls under the Zimmatic brand; hose reel travelers under the Perrot and Greenfield brands; and chemical injection systems, variable rate irrigation systems, flow meters, weather stations, soil moisture sensors, and remote monitoring and control systems under the GrowSmart brand. This segment also offers repair and replacement parts for irrigation systems and controls; and M2M communication technology solutions, data acquisition and management systems, and custom electronic equipment under the Elecsys brand. Its Infrastructure segment provides Quickchange moveable barrier systems that help in highway reconstruction, paving and resurfacing, road widening, median and shoulder construction, and tunnels and bridge repairs; and re-directive and non-re-directive crash cushions, which are used 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. This segment also offers specialty barrier products; road marking and road safety equipment; and railroad signals and structures, and diameter steel tubing products, as well as outsourced manufacturing and production services for other companies. The company serves departments of transportation, municipal transportation road agencies, roadway contractors, subcontractors, distributors, and dealers. Lindsay Corporation was founded in 1954 and is headquartered in Omaha, Nebraska.

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