Analyzing Trinity Industries (NYSE:TRN) and MTR (OTCMKTS:MTCPY)

MTR (OTCMKTS:MTCPY) and Trinity Industries (NYSE:TRN) are both industrials companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.

Insider & Institutional Ownership

86.6% of Trinity Industries shares are owned by institutional investors. 1.6% of Trinity Industries shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares MTR and Trinity Industries’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MTR	N/A	N/A	N/A	N/A	N/A
Trinity Industries	$2.98 billion	0.89	$106.00 million	$1.49	21.70

Trinity Industries has higher revenue and earnings than MTR.

Analyst Ratings

This is a breakdown of recent ratings and target prices for MTR and Trinity Industries, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MTR	0	0	0	0	N/A
Trinity Industries	0	1	2	0	2.67

Trinity Industries has a consensus price target of $31.00, suggesting a potential downside of 4.14%. Given Trinity Industries’ higher probable upside, analysts clearly believe Trinity Industries is more favorable than MTR.

Profitability

This table compares MTR and Trinity Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MTR	N/A	N/A	N/A
Trinity Industries	4.98%	13.66%	1.95%

Summary

Trinity Industries beats MTR on 8 of the 8 factors compared between the two stocks.

About MTR

MTR Corporation Limited designs, constructs, operates, maintains, and invests in railways in Hong Kong, Australia, Mainland China, Macao, Sweden, and the United Kingdom. It operates through Hong Kong Transport Operations; Hong Kong Station Commercial Businesses; Hong Kong Property Rental and Management Businesses; Hong Kong Property Development; Mainland China and International Railway, Property Rental and Management Businesses; Mainland China Property Development; and Other Businesses segments. The company offers domestic and cross-boundary railway services, airport express, and a light rail and bus feeder system. It operates rail network; and stations. The company also provides intercity railway services; leases advertising, office, retail, and car parking spaces at railway stations; offers telecommunication and bandwidth services in railway premises; provides estate management services; and invests in, develops, manages, and leases properties, including shopping malls and offices. In addition, it is involved in the construction, operation, and maintenance of mass transit railway systems. Further, it operates Octopus, a contactless smartcard common payment system; and provides railway consultancy and project management services, as well as offers railway management, engineering, and technology training services. Additionally, the company administers the operation of MTR academy; and provides station management, financing, technical support, and mobile telecommunication network and related services. It also operates cable car system and a theme village. The company was founded in 1975 and is headquartered in Kowloon Bay, Hong Kong.

About Trinity Industries

Trinity Industries, Inc. provides rail transportation products and services under the TrinityRail name in North America. It operates in two segments, Railcar Leasing and Management Services Group, and Rail Products Group. The Railcar Leasing and Management Services Group segment leases freight and tank railcars; originates and manages railcar leases for third-party investors; and provides fleet maintenance and management services. As of December 31, 2023, it had a fleet of 109,295 railcars. This segment serves industrial shipper and railroad companies operating in agriculture, construction and metals, consumer products, energy, and refined products and chemicals markets. The Rail Products Group segment manufactures freight and tank railcars for transporting various liquids, gases, and dry cargo; and offers railcar maintenance and modification services. This segment serves railroads, leasing companies, and industrial shippers of products in the agriculture, construction and metals, consumer products, energy, and refined products and chemicals markets. It sells or leases products and services through its own sales personnel and independent sales representatives. The company was incorporated in 1933 and is headquartered in Dallas, Texas.