Financial Review: Terex Corporation (TEX) & Manitowoc Company, Inc. (The) (MTW)

Terex Corporation (NYSE: TEX) and Manitowoc Company, Inc. (The) (NYSE:MTW) are both industrial products companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, dividends, analyst recommendations, institutional ownership, valuation and profitability.

Institutional and Insider Ownership

97.4% of Terex Corporation shares are owned by institutional investors. Comparatively, 80.9% of Manitowoc Company, Inc. (The) shares are owned by institutional investors. 2.5% of Terex Corporation shares are owned by company insiders. Comparatively, 2.8% of Manitowoc Company, Inc. (The) shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Terex Corporation and Manitowoc Company, Inc. (The)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Terex Corporation -1.76% 4.98% 1.79%
Manitowoc Company, Inc. (The) -14.63% -14.85% -5.70%

Valuation & Earnings

This table compares Terex Corporation and Manitowoc Company, Inc. (The)’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Terex Corporation $4.22 billion 0.98 $152.10 million ($0.63) -73.65
Manitowoc Company, Inc. (The) $1.43 billion 0.91 -$3.00 million ($1.51) -6.11

Terex Corporation has higher revenue and earnings than Manitowoc Company, Inc. (The). Terex Corporation is trading at a lower price-to-earnings ratio than Manitowoc Company, Inc. (The), indicating that it is currently the more affordable of the two stocks.

Dividends

Terex Corporation pays an annual dividend of $0.32 per share and has a dividend yield of 0.7%. Manitowoc Company, Inc. (The) does not pay a dividend. Terex Corporation pays out -50.8% of its earnings in the form of a dividend. Terex Corporation has increased its dividend for 3 consecutive years.

Risk and Volatility

Terex Corporation has a beta of 1.87, indicating that its share price is 87% more volatile than the S&P 500. Comparatively, Manitowoc Company, Inc. (The) has a beta of 1.38, indicating that its share price is 38% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for Terex Corporation and Manitowoc Company, Inc. (The), as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Terex Corporation 3 6 5 0 2.14
Manitowoc Company, Inc. (The) 0 6 3 0 2.33

Terex Corporation currently has a consensus target price of $39.75, indicating a potential downside of 14.33%. Manitowoc Company, Inc. (The) has a consensus target price of $8.13, indicating a potential downside of 11.78%. Given Manitowoc Company, Inc. (The)’s stronger consensus rating and higher possible upside, analysts clearly believe Manitowoc Company, Inc. (The) is more favorable than Terex Corporation.

Summary

Terex Corporation beats Manitowoc Company, Inc. (The) on 13 of the 16 factors compared between the two stocks.

Terex Corporation Company Profile

Terex Corporation is a manufacturer of lifting and material processing products and services that deliver lifecycle solutions. The Company has three business segments: Aerial Work Platforms (AWP), Cranes and Materials Processing (MP). It delivers lifecycle solutions to a range of industries, including the construction, infrastructure, manufacturing, shipping, utility, quarrying and mining industries. The AWP segment designs, manufactures, services and markets aerial work platform equipment, telehandlers and light towers. The AWP segment’s products are used by its customers to construct and maintain industrial, commercial and residential buildings and facilities, and for other commercial operations, as well as in a range of infrastructure projects. The Cranes segment’s products are used by its customers for construction and manufacturing facilities, among others. The MP segment’s products are used by its customers in construction, infrastructure and recycling projects.

Manitowoc Company, Inc. (The) Company Profile

The Manitowoc Company, Inc. is a provider of engineered lifting equipment for the construction industry. The Company operates through the Crane business segment. It designs, manufactures and distributes a line of crawler-mounted lattice-boom cranes, which it sells under the Manitowoc brand name. It also designs and manufactures a line of top-slewing and self-erecting tower cranes, which it sells under the Potain brand name. It designs and manufactures mobile telescopic cranes, which it sells under the Grove brand name and a line of hydraulically powered telescopic boom trucks, which it sells under the National Crane brand name. It also provides crane product parts and services and crane rebuilding, remanufacturing and training services, which are delivered under the Manitowoc Crane Care brand name. Its crane products are used in a range of applications, including energy production/distribution and utilities, petrochemical and industrial projects, and infrastructure applications.

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