Lincoln Electric (LECO) and WSI Industries (WSCI) Head-To-Head Contrast

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WSI Industries (NASDAQ:WSCI) and Lincoln Electric (NASDAQ:LECO) are both industrial products companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, profitability, valuation, dividends and risk.

Valuation & Earnings

This table compares WSI Industries and Lincoln Electric’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
WSI Industries $34.60 million 0.60 $850,000.00 N/A N/A
Lincoln Electric $2.62 billion 2.10 $247.50 million $3.79 22.53

Lincoln Electric has higher revenue and earnings than WSI Industries.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for WSI Industries and Lincoln Electric, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WSI Industries 0 0 0 0 N/A
Lincoln Electric 0 2 7 0 2.78

Lincoln Electric has a consensus target price of $101.50, indicating a potential upside of 18.89%. Given Lincoln Electric’s higher probable upside, analysts plainly believe Lincoln Electric is more favorable than WSI Industries.

Volatility & Risk

WSI Industries has a beta of 0.16, meaning that its stock price is 84% less volatile than the S&P 500. Comparatively, Lincoln Electric has a beta of 1.27, meaning that its stock price is 27% more volatile than the S&P 500.

Dividends

WSI Industries pays an annual dividend of $0.16 per share and has a dividend yield of 2.3%. Lincoln Electric pays an annual dividend of $1.56 per share and has a dividend yield of 1.8%. Lincoln Electric pays out 41.2% of its earnings in the form of a dividend. Lincoln Electric has raised its dividend for 14 consecutive years.

Profitability

This table compares WSI Industries and Lincoln Electric’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
WSI Industries 2.45% 4.03% 2.20%
Lincoln Electric 7.40% 31.77% 12.34%

Insider & Institutional Ownership

9.1% of WSI Industries shares are owned by institutional investors. Comparatively, 71.2% of Lincoln Electric shares are owned by institutional investors. 9.5% of WSI Industries shares are owned by insiders. Comparatively, 3.0% of Lincoln Electric shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Lincoln Electric beats WSI Industries on 11 of the 15 factors compared between the two stocks.

WSI Industries Company Profile

WSI Industries, Inc. engages in the precision contract metal machining business in the United States. It manufactures metal components in medium to high volumes in accordance with customer specifications. The company serves aerospace/avionics/defense industries, recreational power sports vehicles, markets, energy industry, automotive industry, and bioscience industry. WSI Industries, Inc. was founded in 1950 and is headquartered in Monticello, Minnesota.

Lincoln Electric Company Profile

Lincoln Electric Holdings, Inc., through its subsidiaries, designs, manufactures, and sells welding, cutting, and brazing products worldwide. It operates through three segments: Americas Welding, International Welding, and The Harris Products Group. The company's welding products include arc welding power sources, plasma cutters, wire feeding systems, robotic welding packages, integrated automation systems, fume extraction equipment, consumable electrodes, fluxes and welding accessories, and specialty welding consumables and fabrication products. It also provides computer numeric controlled plasma and oxy-fuel cutting systems, and regulators and torches used in oxy-fuel welding, cutting, and brazing; and consumables used in the brazing and soldering alloys market. In addition, the company is involved in the retail business in the United States. It serves general fabrication, energy and process, automotive and transportation, heavy fabrication, and construction and infrastructure industries, as well as ship building and maintenance and repair markets. The company sells its products directly to users of welding products, as well as through industrial distributors, retailers, and agents. Lincoln Electric Holdings, Inc. was founded in 1895 and is headquartered in Cleveland, Ohio.

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