Titan International (NYSE: TWI) and Ternium (NYSE:TX) are both industrial products companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.
Earnings and Valuation
This table compares Titan International and Ternium’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Titan International||$1.47 billion||0.48||-$60.04 million||($0.49)||-23.82|
|Ternium||$9.70 billion||0.74||$886.21 million||$4.51||7.98|
Ternium has higher revenue and earnings than Titan International. Titan International is trading at a lower price-to-earnings ratio than Ternium, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
86.2% of Titan International shares are owned by institutional investors. Comparatively, 17.6% of Ternium shares are owned by institutional investors. 17.3% of Titan International shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This is a summary of recent ratings and price targets for Titan International and Ternium, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Titan International presently has a consensus price target of $12.00, suggesting a potential upside of 2.83%. Ternium has a consensus price target of $35.33, suggesting a potential downside of 1.85%. Given Titan International’s higher probable upside, equities analysts plainly believe Titan International is more favorable than Ternium.
Risk and Volatility
Titan International has a beta of 1.73, suggesting that its share price is 73% more volatile than the S&P 500. Comparatively, Ternium has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500.
This table compares Titan International and Ternium’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Titan International pays an annual dividend of $0.02 per share and has a dividend yield of 0.2%. Ternium pays an annual dividend of $1.10 per share and has a dividend yield of 3.1%. Titan International pays out -4.1% of its earnings in the form of a dividend. Ternium pays out 24.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Ternium beats Titan International on 11 of the 16 factors compared between the two stocks.
About Titan International
Titan International, Inc., together with its subsidiaries, manufactures and sells wheels, tires, wheel and tire assemblies, and undercarriage systems and components for off-highway vehicles in the United States and internationally. It operates in three segments: Agricultural, Earthmoving/Construction, and Consumer. The company offers rims, wheels, tires, and undercarriage systems and components for various agricultural equipment, including tractors, combines, skidders, plows, planters, and irrigation equipment; and off-the-road earthmoving, mining, military, construction, and forestry equipment comprising skid steers, aerial lifts, cranes, graders and levelers, scrapers, self-propelled shovel loaders, articulated dump trucks, load transporters, haul trucks, backhoe loaders, crawler tractors, lattice cranes, shovels, and hydraulic excavators. It also provides bias and light truck tires; and products for all-terrain vehicles, turf, and golf cart applications, as well as high-speed brakes. The company sells its products directly to original equipment manufacturers, as well as to the aftermarket through independent distributors, equipment dealers, and own distribution centers. Titan International, Inc. was founded in 1890 and is based in Quincy, Illinois.
Ternium S.A., through its subsidiaries, manufactures and processes various steel products in Mexico, Argentina, Paraguay, Chile, Bolivia, Uruguay, Brazil, the United States, Colombia, Guatemala, Costa Rica, Honduras, El Salvador, and Nicaragua. It operates in two segments, Steel and Mining. The Steel segment offers steel products, including slabs, billets and round bars, hot-rolled coils and sheets, bars and stirrups, wire rods, cold-rolled coils and sheets, tin plates, hot dipped galvanized and electrogalvanized sheets and pre-painted sheets, steel pipes and tubular products, beams, and roll formed products, as well as other products, such as pig iron. It also produces and sells electricity to electric grids. The Mining segment sells iron ore concentrates and pellets. The company serves various companies and small businesses operating in the automotive, home appliance, construction, capital goods, container, food, and energy industries. Ternium S.A. was founded in 1961 and is based in Luxembourg City, Luxembourg. Ternium S.A. is a subsidiary of Techint Holdings S.à r.l.
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