Highway (NASDAQ:HIHO – Get Rating) and Crane NXT (NYSE:CXT – Get Rating) are both industrial products companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, institutional ownership, profitability and analyst recommendations.
Dividends
Highway pays an annual dividend of $0.20 per share and has a dividend yield of 10.0%. Crane NXT pays an annual dividend of $1.88 per share and has a dividend yield of 3.9%. Highway pays out 181.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Crane NXT pays out 24.9% of its earnings in the form of a dividend.
Insider and Institutional Ownership
5.3% of Highway shares are held by institutional investors. Comparatively, 70.8% of Crane NXT shares are held by institutional investors. 32.1% of Highway shares are held by company insiders. Comparatively, 2.4% of Crane NXT shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Highway | 0.02% | 4.93% | 3.35% |
| Crane NXT | 13.10% | 24.45% | 10.14% |
Valuation and Earnings
This table compares Highway and Crane NXT’s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Highway | $12.36 million | 0.49 | $440,000.00 | $0.11 | 18.18 |
| Crane NXT | $3.37 billion | 0.81 | $401.10 million | $7.55 | 6.39 |
Crane NXT has higher revenue and earnings than Highway. Crane NXT is trading at a lower price-to-earnings ratio than Highway, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent ratings and target prices for Highway and Crane NXT, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Highway | 0 | 0 | 0 | 0 | N/A |
| Crane NXT | 0 | 0 | 1 | 0 | 3.00 |
Volatility & Risk
Highway has a beta of 0.27, indicating that its stock price is 73% less volatile than the S&P 500. Comparatively, Crane NXT has a beta of 1.49, indicating that its stock price is 49% more volatile than the S&P 500.
Summary
Crane NXT beats Highway on 11 of the 14 factors compared between the two stocks.
About Highway
Highway Holdings Ltd. engages in the manufacture of metal, plastic, electric and electronic components, subassemblies, and finished products. It operates through the Metal Stamping and Mechanical Original Equipment Manufacturer (OEM) and Electric OEM segments. The Metal Stamping and Mechanical OEM segment focuses on the manufacture and sale of metal parts and components. The Electric OEM segment is involved in the manufacture and sale of plastic and electronic parts, components, and machines. The company was founded by Roland W. Kohl on July 20, 1990 and is headquartered in Hong Kong.
About Crane NXT
Crane NXT Co. engages in the management of a subsidiary, which manufacture aerospace equipment, electronics systems, and flow control systems. The company was founded on December 2, 2021 and is headquartered in Stamford, CT.
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