Astec Industries, Inc. (ASTE) vs Federal Signal Corporation (FSS)

Astec Industries, Inc. and Federal Signal Corporation are both Farm & Heavy Construction Machinery companies. Federal Signal Corporation is the larger, with a market value of $6.9B against $934.6M — 7.4× the size. Federal Signal Corporation trades at the lower P/E: 24.5× against 48.0×. Federal Signal Corporation grew revenue faster over the last twelve months: 24.0% against 18.7%. Federal Signal Corporation has the higher net margin (11.7% vs 1.26%) and the higher return on invested capital (13.0% vs 3.36%). Both pay a dividend; Astec Industries, Inc. yields more (1.47% vs 0.50%). Across the 23 metrics below, Federal Signal Corporation leads on 17 and Astec Industries, Inc. on 6.

Valuation

Metric ASTE FSS Farm & Heavy Construction Machinery median
P/E 48.00 24.47 23.38
P/S 0.61 2.85 0.81
P/B 1.38 4.64 1.43
Price to free cash flow 28.36 20.60 25.31
EV/EBITDA 10.70 15.19 12.13
EV/Sales 0.81 3.01 1.20
Earnings yield 2.08% 4.09% 2.73%
Free cash flow yield 3.53% 4.85% 3.02%

Profitability

Metric ASTE FSS Farm & Heavy Construction Machinery median
Gross margin 25.68% 29.17% 24.21%
Operating margin 3.43% 16.15% 4.47%
Net margin 1.26% 11.66% 1.49%
Free cash flow margin 2.15% 13.86% 2.15%
Return on equity 2.87% 20.61% 4.16%
Return on assets 1.58% 13.10% 1.45%
Return on invested capital 3.36% 13.02% 3.36%

Growth

Metric ASTE FSS Farm & Heavy Construction Machinery median
Revenue growth (TTM) 18.70% 23.97% 2.18%
EPS growth (last fiscal year) 784.21% 14.57% —
Revenue growth, 5-year CAGR 6.60% 14.03% 7.34%
Net income growth, 5-year CAGR (3.35%) 20.72% 0.00%

Health

Metric ASTE FSS Farm & Heavy Construction Machinery median
Debt to equity 0.55 0.30 0.67
Current ratio 2.52 2.74 1.98
Net debt to EBITDA 2.36 1.19 1.12

Dividend

Metric ASTE FSS Farm & Heavy Construction Machinery median
Dividend yield 1.47% 0.50% 1.45%
Payout ratio 0.47 0.17 0.08

Size

Metric ASTE FSS Farm & Heavy Construction Machinery median
Market cap 934.60m 6.88b 772.81m

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