Contrasting Manitowoc (NYSE:MTW) and Trinity Industries (NYSE:TRN)

Trinity Industries (NYSE:TRN) and Manitowoc (NYSE:MTW) are both industrials companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, earnings, analyst recommendations, dividends and profitability.

Valuation and Earnings

This table compares Trinity Industries and Manitowoc”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Trinity Industries	$2.04 billion	1.03	$253.10 million	$4.15	6.38
Manitowoc	$2.24 billion	0.35	$7.20 million	$0.55	39.95

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

Volatility and Risk

Trinity Industries has a beta of 1.35, indicating that its share price is 35% more volatile than the S&P 500. Comparatively, Manitowoc has a beta of 1.77, indicating that its share price is 77% more volatile than the S&P 500.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Trinity Industries	0	3	0	0	2.00
Manitowoc	2	1	0	0	1.33

Trinity Industries presently has a consensus target price of $35.00, suggesting a potential upside of 32.20%. Manitowoc has a consensus target price of $14.00, suggesting a potential downside of 36.29%. Given Trinity Industries’ stronger consensus rating and higher probable upside, analysts plainly believe Trinity Industries is more favorable than Manitowoc.

Insider & Institutional Ownership

86.6% of Trinity Industries shares are held by institutional investors. Comparatively, 78.7% of Manitowoc shares are held by institutional investors. 2.1% of Trinity Industries shares are held by insiders. Comparatively, 4.0% of Manitowoc shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Trinity Industries and Manitowoc’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%
Manitowoc	0.87%	3.86%	1.43%

Summary

Trinity Industries beats Manitowoc on 9 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 Manitowoc

The Manitowoc Company, Inc. provides engineered lifting solutions in the Americas, Europe, Africa, the Middle East, the Asia Pacific, and internationally. It designs, manufactures, and distributes crawler-mounted lattice-boom cranes under the Manitowoc brand; a line of top-slewing and self-erecting tower cranes under the Potain brand; mobile hydraulic cranes under the Grove, Shuttlelift, and National Crane brands; and hydraulic boom trucks under the National Crane brand. The company also provides aftermarket services, such as sale of parts and accessories, field service work, routine maintenance services, technical support, erection and decommissioning services, crane and component remanufacturing, training, and telematics services. Its crane products are used in various applications, including energy production/distribution and utilities; petrochemical and industrial; infrastructure, such as road, bridge, and airport construction; and commercial and residential construction. The company serves a range of customers, including dealers, rental companies, contractors, and government entities in the petrochemical, industrial, commercial construction, power and utilities, infrastructure, and residential construction end markets. The Manitowoc Company, Inc. was founded in 1902 and is headquartered in Milwaukee, Wisconsin.