Financial Analysis: Alamo Group (NYSE:ALG) & Nature’s Miracle (NASDAQ:NMHI)

Alamo Group (NYSE:ALG) and Nature’s Miracle (NASDAQ:NMHI) are both industrial products companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, earnings, risk, profitability, valuation and dividends.

Institutional and Insider Ownership

92.4% of Alamo Group shares are held by institutional investors. Comparatively, 94.6% of Nature’s Miracle shares are held by institutional investors. 1.4% of Alamo Group shares are held by insiders. Comparatively, 36.2% of Nature’s Miracle shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Alamo Group and Nature’s Miracle, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alamo Group	0	0	2	0	3.00
Nature’s Miracle	0	0	0	0	N/A

Alamo Group presently has a consensus target price of $218.00, suggesting a potential upside of 20.34%. Given Alamo Group’s higher possible upside, equities research analysts plainly believe Alamo Group is more favorable than Nature’s Miracle.

Earnings and Valuation

This table compares Alamo Group and Nature’s Miracle”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alamo Group	$1.68 billion	1.30	$136.16 million	$11.24	16.12
Nature’s Miracle	$9.63 million	0.44	-$7.34 million	N/A	N/A

Alamo Group has higher revenue and earnings than Nature’s Miracle.

Profitability

This table compares Alamo Group and Nature’s Miracle’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alamo Group	7.56%	13.51%	8.62%
Nature’s Miracle	N/A	N/A	N/A

Volatility and Risk

Alamo Group has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500. Comparatively, Nature’s Miracle has a beta of -0.73, suggesting that its share price is 173% less volatile than the S&P 500.

Summary

Alamo Group beats Nature’s Miracle on 9 of the 11 factors compared between the two stocks.

About Alamo Group

Alamo Group Inc. designs, manufactures, distributes, and services vegetation management and infrastructure maintenance equipment for governmental, industrial, and agricultural uses worldwide. It operates through two segments, Vegetation Management and Industrial Equipment. Its Vegetation Management Division segment offers hydraulically-powered and tractor – and off-road chassis mounted mowers, other cutters and replacement parts for heavy-duty and intensive uses and heavy duty, tractor- and truck-mounted mowing and vegetation maintenance equipment, and replacement parts. This segment also provides rotary and finishing mowers, flail and disc mowers, front-end loaders, backhoes, rotary tillers, posthole diggers, scraper blades and replacement parts, zero turn radius mowers, cutting parts, plain and hard-faced replacement tillage tools, disc blades, and fertilizer application components; aftermarket agricultural parts, heavy-duty mechanical rotary mowers, snow blowers, rock removal equipment, tractor attachments, agricultural implements, hydraulic and boom-mounted hedge and grass cutters, hedgerow cutters, industrial grass mowers, agricultural seedbed preparation cultivators, self-propelled sprayers and multi-drive load-carrying vehicles, and cutting blades. The company's Industrial Equipment Division segment offers truck-mounted air vacuum, mechanical broom, and regenerative air sweepers, pothole patchers, leaf collection equipment and replacement brooms, parking lot and street sweepers, excavators, catch basin cleaners, and roadway debris vacuum systems, as well as truck-mounted vacuum machines, combination sewer cleaners, and hydro excavators. This segment also offers ice control products, snowplows and heavy duty snow removal equipment, hitches, attachments, and graders; and public works and runway maintenance products, parts, and services, and high pressure cleaning systems and trenchers. The company was founded in 1955 and is headquartered in Seguin, Texas.

About Nature’s Miracle

Nature's Miracle Holding Inc., an agriculture technology company, provides equipment and services to growers in the controlled environment agriculture industry in North America. The company provides grow lights and other hydroponic products; and develops a pipeline to build commercial-scale greenhouse for fresh and local vegetable products. It also designs, builds, and operates various indoor growing settings, including greenhouse and indoor-growing spaces. Nature's Miracle Holding Inc. is based in Upland, California.