Critical Analysis: Toromont Industries (TMTNF) & Its Competitors

Toromont Industries (OTCMKTS:TMTNF) is one of 158 publicly-traded companies in the “Trading Companies & Distributors” industry, but how does it contrast to its peers? We will compare Toromont Industries to related companies based on the strength of its valuation, dividends, analyst recommendations, risk, earnings, institutional ownership and profitability.

Analyst Ratings

This is a breakdown of recent recommendations for Toromont Industries and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Toromont Industries	0	3	4	0	2.57
Toromont Industries Competitors	1413	4861	6652	219	2.43

As a group, “Trading Companies & Distributors” companies have a potential upside of 8.32%. Given Toromont Industries’ peers higher probable upside, analysts clearly believe Toromont Industries has less favorable growth aspects than its peers.

Earnings & Valuation

This table compares Toromont Industries and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Toromont Industries	$3.72 billion	$355.41 million	45.39
Toromont Industries Competitors	$6.49 billion	$365.60 million	23.92

Toromont Industries’ peers have higher revenue and earnings than Toromont Industries. Toromont Industries is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Dividends

Toromont Industries pays an annual dividend of $1.62 per share and has a dividend yield of 1.1%. Toromont Industries pays out 49.4% of its earnings in the form of a dividend. As a group, “Trading Companies & Distributors” companies pay a dividend yield of 2.9% and pay out 36.7% of their earnings in the form of a dividend. Toromont Industries lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Insider & Institutional Ownership

50.9% of shares of all “Trading Companies & Distributors” companies are owned by institutional investors. 17.1% of shares of all “Trading Companies & Distributors” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Toromont Industries and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Toromont Industries	9.25%	16.00%	9.69%
Toromont Industries Competitors	0.71%	-34.48%	3.15%

Summary

Toromont Industries peers beat Toromont Industries on 8 of the 14 factors compared.

Toromont Industries Company Profile

Toromont Industries Ltd. provides specialized capital equipment in Canada, the United States, and internationally. It operates in two segments, Equipment Group and CIMCO. The Equipment Group segment engages in the sale, rental, and service of mobile equipment for Caterpillar and other manufacturers; sale, rental, and service of engines used in various applications, including industrial, commercial, marine, on-highway trucks, and power generation; and sale of complementary and related products, parts, and services. This segment serves road building, mining, aggregates, infrastructure, residential and commercial construction, power generation, agriculture, forestry, and waste management markets. The CIMCO segment is involved in the design, engineering, fabrication, installation, and after-sale support of refrigeration systems in industrial and recreational markets. This segment primarily serves beverage and food processing, cold storage, food distribution, mining, and recreational ice rink sectors. Toromont Industries Ltd. was founded in 1961 and is headquartered in Concord, Canada.