Comparing Titan International (NYSE:TWI) and Luxfer (NYSE:LXFR)

Luxfer (NYSE:LXFR) and Titan International (NYSE:TWI) are both small-cap industrials companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, valuation, institutional ownership and analyst recommendations.

Risk and Volatility

Luxfer has a beta of 1.12, suggesting that its stock price is 12% more volatile than the S&P 500. Comparatively, Titan International has a beta of 1.43, suggesting that its stock price is 43% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for Luxfer and Titan International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Luxfer	0	2	0	1	2.67
Titan International	1	0	1	0	2.00

Titan International has a consensus price target of $13.00, indicating a potential upside of 84.95%. Given Titan International’s higher possible upside, analysts plainly believe Titan International is more favorable than Luxfer.

Valuation and Earnings

This table compares Luxfer and Titan International”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Luxfer	$360.90 million	1.29	$7.70 million	$0.30	57.48
Titan International	$1.83 billion	0.25	-$63.49 million	($1.21)	-5.81

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

Institutional & Insider Ownership

90.8% of Luxfer shares are owned by institutional investors. Comparatively, 80.4% of Titan International shares are owned by institutional investors. 2.0% of Luxfer shares are owned by insiders. Comparatively, 6.1% of Titan International shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Luxfer	2.20%	12.22%	7.23%
Titan International	-4.11%	-1.56%	-0.48%

Summary

Luxfer beats Titan International on 10 of the 15 factors compared between the two stocks.

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.

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.