Critical Survey: CNH Industrial (NYSE:CNH) & Titan International (NYSE:TWI)

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CNH Industrial	0	5	8	1	2.71
Titan International	0	0	2	1	3.33

CNH Industrial currently has a consensus price target of $15.17, indicating a potential upside of 15.69%. Titan International has a consensus price target of $11.00, indicating a potential upside of 16.16%. Given Titan International’s stronger consensus rating and higher possible upside, analysts plainly believe Titan International is more favorable than CNH Industrial.

Insider and Institutional Ownership

59.9% of CNH Industrial shares are held by institutional investors. Comparatively, 80.4% of Titan International shares are held by institutional investors. 0.2% of CNH Industrial shares are held by company insiders. Comparatively, 32.5% of Titan International shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CNH Industrial	5.53%	14.32%	2.56%
Titan International	-0.83%	-0.05%	-0.02%

Volatility and Risk

CNH Industrial has a beta of 1.5, indicating that its stock price is 50% more volatile than the S&P 500. Comparatively, Titan International has a beta of 2.03, indicating that its stock price is 103% more volatile than the S&P 500.

Earnings and Valuation

This table compares CNH Industrial and Titan International”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CNH Industrial	$19.84 billion	0.83	$1.25 billion	$0.82	15.99
Titan International	$1.85 billion	0.33	-$5.56 million	($0.21)	-45.10

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

Summary

CNH Industrial beats Titan International on 9 of the 14 factors compared between the two stocks.

About CNH Industrial

CNH Industrial NV is an equipment and services company, which develops, manufactures and sells specialized machines and services for the farming and construction industries, and supplies replacement parts and accessories. It operates through the following operating segments: Agriculture, Construction, and Financial Services. The Agriculture segment designs, manufactures, and distributes a full line of farm machinery and implements, including two-wheel and four-wheel drive tractors, crawler tractors, combines, grape and sugar cane harvesters, hay and forage equipment, planting and seeding equipment, soil preparation and cultivation implements and material handling equipment. The Construction segment comprises of a full line of construction equipment including excavators, crawler dozers, graders, wheel loaders, backhoe loaders, skid steer loaders, and compact track loaders. The Financial Services segment offers retail note and lease financing to end-use customers for the purchase of new and used agricultural and construction equipment and components. The company was founded in 1866 and is headquartered in London, the United Kingdom.

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.