Luxfer (NYSE:LXFR) versus Trinity Industries (NYSE:TRN) Head-To-Head Review

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

Institutional and Insider Ownership

86.6% of Trinity Industries shares are held by institutional investors. Comparatively, 90.8% of Luxfer shares are held by institutional investors. 2.1% of Trinity Industries shares are held by insiders. Comparatively, 2.0% of Luxfer shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Trinity Industries and Luxfer”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Trinity Industries	$2.16 billion	0.97	$253.10 million	$4.15	6.30
Luxfer	$384.60 million	1.21	$7.70 million	$0.30	57.52

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

Analyst Recommendations

This is a breakdown of current ratings for Trinity Industries and Luxfer, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Trinity Industries	0	3	0	0	2.00
Luxfer	0	2	0	1	2.67

Trinity Industries currently has a consensus target price of $35.00, suggesting a potential upside of 33.89%. Given Trinity Industries’ higher probable upside, equities research analysts clearly believe Trinity Industries is more favorable than Luxfer.

Risk & Volatility

Trinity Industries has a beta of 1.37, indicating that its share price is 37% more volatile than the S&P 500. Comparatively, Luxfer has a beta of 1.12, indicating that its share price is 12% more volatile than the S&P 500.

Dividends

Trinity Industries pays an annual dividend of $1.24 per share and has a dividend yield of 4.7%. Luxfer pays an annual dividend of $0.52 per share and has a dividend yield of 3.0%. Trinity Industries pays out 29.9% of its earnings in the form of a dividend. Luxfer pays out 173.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Trinity Industries has raised its dividend for 16 consecutive years. Trinity Industries is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Trinity Industries and Luxfer’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%
Luxfer	2.20%	12.22%	7.23%

Summary

Trinity Industries beats Luxfer on 11 of the 17 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 Luxfer

Luxfer Holdings PLC, together with its subsidiaries, designs, manufactures, and supplies high-performance materials, components, and high-pressure gas containment devices for defense and first response, healthcare, transportation, and general industrial applications. The company operates through three segments: Elektron, Gas Cylinders, and graphic Arts. The Elektron segment focuses on specialty materials based primarily on magnesium and zirconium. This segment also provides magnesium alloys for use in aerospace, healthcare, and oil and gas applications; magnesium powders for use in countermeasure flares, as well as heater meals; and zirconium-based materials and oxides used as catalysts and in the manufacture of advanced ceramics, fiber-optic fuel cells, pharmaceuticals, and other performance products. The Gas Cylinders segment manufactures and markets specialized products using carbon composites and aluminum alloys, including pressurized cylinders for use in various applications comprising self-contained breathing apparatus (SCBA) for firefighters, containment of oxygen, and other medical gases for healthcare, alternative fuel vehicles, and general industrial applications. The Graphic Art segments provides magnesium photo-engraving plates, engraving metals, and etching chemicals. This segment also offers magnesium, copper, and zinc photo-engraving plates for graphic arts and luxury packaging; developer solutions; and solid wrought magnesium slab and sheet. Luxfer Holdings PLC has operations in the United States, the United Kingdom, Japan, Germany, Canada, rest of Europe, the Asia Pacific, and internationally. The company was founded in 1898 and is headquartered in Milwaukee, Wisconsin.