Contrasting Titan International (NYSE:TWI) and Trinity Industries (NYSE:TRN)

Trinity Industries (NYSE:TRN) and Titan International (NYSE:TWI) are both industrials companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, institutional ownership, risk and dividends.

Volatility & Risk

Trinity Industries has a beta of 1.35, suggesting that its stock price is 35% more volatile than the S&P 500. Comparatively, Titan International has a beta of 1.46, suggesting that its stock price is 46% more volatile than the S&P 500.

Earnings & Valuation

This table compares Trinity Industries and Titan International”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Trinity Industries	$2.16 billion	1.04	$253.10 million	$4.15	6.81
Titan International	$1.83 billion	0.29	-$63.49 million	($1.21)	-6.85

Trinity Industries has higher revenue and earnings than Titan International. Titan International is trading at a lower price-to-earnings ratio than Trinity Industries, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

86.6% of Trinity Industries shares are owned by institutional investors. Comparatively, 80.4% of Titan International shares are owned by institutional investors. 2.1% of Trinity Industries shares are owned by insiders. Comparatively, 6.1% of Titan International shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Trinity Industries and Titan International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Trinity Industries	16.62%	18.51%	2.56%
Titan International	-4.11%	-1.56%	-0.48%

Analyst Ratings

This is a breakdown of recent recommendations for Trinity Industries and Titan International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Trinity Industries	0	2	1	0	2.33
Titan International	1	0	1	0	2.00

Trinity Industries presently has a consensus price target of $35.00, indicating a potential upside of 23.76%. Titan International has a consensus price target of $13.00, indicating a potential upside of 56.82%. Given Titan International’s higher possible upside, analysts plainly believe Titan International is more favorable than Trinity Industries.

Summary

Trinity Industries beats Titan International on 10 of the 13 factors compared between the two stocks.

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.

About Titan International

Titan International, Inc., together with its subsidiaries, manufactures and sells wheels, tires, and undercarriage systems and components for off-highway vehicles in the United States and internationally. The company operates in Agricultural, Earthmoving/Construction, and Consumer segments. It offers wheels, tires, and undercarriage systems and components for various agricultural equipment, including tractors, combines, skidders, plows, planters, and irrigation equipment. The company also offers wheels, tires, and undercarriage systems and components for off-the-road earthmoving, mining, military, construction, and forestry equipment, including 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. In addition, it provides bias and light truck tires; and products for ATVs, rock climbers, and turf applications, as well as specialty products and train brakes. It sells its products directly to original equipment manufacturers, as well as to the aftermarket through independent distributors, equipment dealers, and its distribution centers. Titan International, Inc. was founded in 1890 and is headquartered in West Chicago, Illinois.