Terex (NYSE:TEX) & KUKA Aktiengesellschaft (OTCMKTS:KUKAY) Critical Comparison

KUKA Aktiengesellschaft (OTCMKTS:KUKAY) and Terex (NYSE:TEX) are both mid-cap industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, earnings, valuation, profitability and dividends.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for KUKA Aktiengesellschaft and Terex, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KUKA Aktiengesellschaft	0	0	0	0	0.00
Terex	0	5	5	2	2.75

Terex has a consensus target price of $78.91, indicating a potential upside of 16.90%. Given Terex’s stronger consensus rating and higher possible upside, analysts clearly believe Terex is more favorable than KUKA Aktiengesellschaft.

Dividends

KUKA Aktiengesellschaft pays an annual dividend of $0.06 per share and has a dividend yield of 0.1%. Terex pays an annual dividend of $0.68 per share and has a dividend yield of 1.0%. Terex pays out 34.7% of its earnings in the form of a dividend. Terex has increased its dividend for 5 consecutive years. Terex is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation and Earnings

This table compares KUKA Aktiengesellschaft and Terex”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
KUKA Aktiengesellschaft	$3.89 billion	0.80	-$46.14 million	N/A	N/A
Terex	$5.42 billion	1.42	$221.00 million	$1.96	34.44

Terex has higher revenue and earnings than KUKA Aktiengesellschaft.

Institutional & Insider Ownership

92.9% of Terex shares are held by institutional investors. 1.6% of Terex shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares KUKA Aktiengesellschaft and Terex’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
KUKA Aktiengesellschaft	1.18%	2.87%	1.06%
Terex	2.23%	12.24%	5.16%

Volatility and Risk

KUKA Aktiengesellschaft has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500. Comparatively, Terex has a beta of 1.51, indicating that its stock price is 51% more volatile than the S&P 500.

Summary

Terex beats KUKA Aktiengesellschaft on 15 of the 16 factors compared between the two stocks.

About KUKA Aktiengesellschaft

KUKA Aktiengesellschaft, an automation company, provides robot-based automation solutions worldwide. It operates through five segments: Systems, Robotics, Swisslog, Swisslog Healthcare, and China. The company manufactures and supplies industrial, collaborative, and mobile robots, as well as robot controllers, software, and digital services for industrial Internet of Things. It also offers automated guided vehicles and other automation components to production cells, turnkey systems, and networked production with the aid of cloud-based IT tools; individual system components, tools and fixtures, and automated production cells; and robot-based and modular manufacturing cells, as well as support services. In addition, the company offers automated solutions for hospitals, warehouses, and distribution centers; and warehouse management systems and healthcare systems. It serves customers in the automotive, electronics, e-commerce/retail, consumer goods, metal and plastic, healthcare, and other industries. The company was formerly known as Industrie-Werke Karlsruhe Augsburg Aktiengesellschaft and changed its name to KUKA Aktiengesellschaft in 2007. The company was founded in 1898 and is headquartered in Augsburg, Germany. KUKA Aktiengesellschaft is a subsidiary of Midea Electric Netherlands (I) B.V.

About Terex

Terex Corporation manufactures and sells aerial work platforms and materials processing machinery worldwide. It operates in two segments, Materials Processing (MP) and Aerial Work Platforms (AWP). The MP segment designs, manufactures, services, and markets materials processing and specialty equipment, includes crushers, washing systems, screens, trommels, apron feeders, material handlers, pick and carry cranes, rough terrain cranes, tower cranes, wood processing, biomass and recycling equipment, concrete mixer trucks and concrete pavers, conveyors, and related components and replacement parts under the Terex, Powerscreen, Fuchs, EvoQuip, Canica, Cedarapids, CBI, Simplicity, Franna, Terex Ecotec, Finlay, ProAll, ZenRobotics, Terex Washing Systems, Terex MPS, Terex Jaques, Terex Advance, ProStack, Terex Bid-Well, MDS, and Terex Recycling Systems brands. Its products are used in construction, infrastructure, and recycling projects; quarrying and mining, and material handling applications; maintenance applications to lift equipment or material; and landscaping and biomass production industries. The AWP segment designs, manufactures, services, and markets aerial work platform equipment, utility equipment, and telehandlers under the Terex and Genie brands. Its products include portable material lifts, portable aerial work platforms, trailer-mounted articulating booms, self-propelled articulating and telescopic booms, and scissor lifts, as well as related components and replacement parts for construction and maintenance of industrial, commercial, institutional, and residential buildings and facilities, transmission and distribution lines, construction and foundation drilling applications, and other commercial operations, as well as in tree trimming and various infrastructure projects. The company offers financing solutions to assist customers in the rental, leasing, and acquisition of its products. Terex Corporation was founded in 1933 and is based in Norwalk, Connecticut.