Head-To-Head Contrast: Titan International (NYSE:TWI) vs. CNH Industrial (NYSE:CNH)

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

Insider and Institutional Ownership

80.4% of Titan International shares are held by institutional investors. Comparatively, 59.9% of CNH Industrial shares are held by institutional investors. 25.0% of Titan International shares are held by company insiders. Comparatively, 1.0% of CNH Industrial shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk and Volatility

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for Titan International and CNH Industrial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Titan International	0	0	2	1	3.33
CNH Industrial	0	6	8	1	2.67

Titan International presently has a consensus price target of $11.00, indicating a potential upside of 16.83%. CNH Industrial has a consensus price target of $14.88, indicating a potential upside of 15.36%. Given Titan International’s stronger consensus rating and higher possible upside, equities analysts plainly believe Titan International is more favorable than CNH Industrial.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Titan International	$1.85 billion	0.32	-$5.56 million	($0.21)	-44.83
CNH Industrial	$19.84 billion	0.81	$1.25 billion	$0.82	15.74

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.

Profitability

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

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

Summary

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

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.

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.