Lonking (OTCMKTS:LONKF) and Komatsu (OTCMKTS:KMTUY) are both industrial products companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, analyst recommendations, dividends, earnings and profitability.

Profitability

This table compares Lonking and Komatsu’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lonking N/A N/A N/A
Komatsu 8.26% 12.51% 6.41%

Analyst Ratings

This is a summary of current ratings and recommmendations for Lonking and Komatsu, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lonking 0 0 0 0 N/A
Komatsu 0 0 0 0 N/A

Dividends

Komatsu pays an annual dividend of $0.35 per share and has a dividend yield of 1.3%. Lonking does not pay a dividend. Komatsu pays out 18.6% of its earnings in the form of a dividend.

Risk and Volatility

Lonking has a beta of 0.59, indicating that its share price is 41% less volatile than the S&P 500. Comparatively, Komatsu has a beta of 1.32, indicating that its share price is 32% more volatile than the S&P 500.

Valuation and Earnings

This table compares Lonking and Komatsu’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Lonking $1.33 billion 0.96 $154.75 million N/A N/A
Komatsu $22.59 billion 1.13 $1.77 billion $1.88 14.35

Komatsu has higher revenue and earnings than Lonking.

Insider & Institutional Ownership

0.2% of Komatsu shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Komatsu beats Lonking on 9 of the 10 factors compared between the two stocks.

Lonking Company Profile

Lonking Holdings Limited, an investment holding company, manufactures and distributes wheel loaders, road rollers, excavators, forklifts, and other construction machinery in Mainland China. The company’s products also include hydraulic excavators, skid steer loaders, motor graders, bulldozers, and stackers. It also develops and produces components, including gearboxes, torque converters, axles, hydraulic components, gear pipes and driver shaft, and other products; and provides loader, excavator, forklift, road machinery, warehouse, and other parts, as well as maintenance and support services. In addition, the company offers finance leasing for construction machinery. Further, it distributes wheel loaders and other machinery; and trades in construction machinery and components. Lonking Holdings Limited was founded in 1993 and is headquartered in Shanghai, the People’s Republic of China.

Komatsu Company Profile

Komatsu Ltd. manufactures and sells construction, mining, and utility equipment worldwide. The company operates through three segments: Construction, Mining, and Utility Equipment; Retail Finance; and Industrial Machinery and Others. It offers construction and mining equipment, including electric rope shovels, continuous miners, hydraulic excavators, wheel loaders, bulldozers, motor graders, dump trucks, mini excavators, utility equipment, and other mining equipment. The company also provides forklift trucks; forestry equipment, including harvesters, forwarders, and feller bunchers, as well as forestry-specific machines based on construction equipment; recycling equipment, such as mobile crushers, soil recyclers, and mobile tub grinders; tunneling machines, which comprise shield and tunnel-boring machines, as well as small diameter pipe jacking machines; and diesel engines, hydraulic equipment, and iron and steel castings products. In addition, it offers metal forging and stamping presses, including large presses, and small and medium-sized presses; sheet-metal machines, such as press brakes, shears, laser cutting machines, and fine plasma cutting machines; machine tools, which comprise crankshaft millers, transfer machines, machining centers, grinding machines, and wire saws; excimer lasers for semiconductor lithography tools; thermoelectric modules and temperature-control equipment for semiconductor manufacturing; and defense-related equipment, as well as provides warehousing and packing services. Further, the company provides other specific equipment for demolition, metal recycle, and slag handling; wear parts, periodic replacement parts, attachments, and remanufacturing parts; and retail financing for construction and mining equipment. Komatsu Ltd. was founded in 1884 and is headquartered in Tokyo, Japan.

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