Critical Review: Tennant (NYSE:TNC) vs. Tri-Tech (OTCMKTS:TRITF)

Tennant (NYSE:TNC) and Tri-Tech (OTCMKTS:TRITF) are both industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, earnings, dividends, institutional ownership, valuation, profitability and analyst recommendations.

Profitability

This table compares Tennant and Tri-Tech’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tennant	4.84%	16.41%	8.67%
Tri-Tech	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current ratings and target prices for Tennant and Tri-Tech, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tennant	0	2	1	0	2.33
Tri-Tech	0	0	0	0	0.00

Tennant currently has a consensus price target of $125.00, indicating a potential upside of 54.95%. Given Tennant’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Tennant is more favorable than Tri-Tech.

Institutional & Insider Ownership

93.3% of Tennant shares are owned by institutional investors. 2.6% of Tennant shares are owned by insiders. Comparatively, 44.3% of Tri-Tech shares are owned by 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.

Earnings & Valuation

This table compares Tennant and Tri-Tech”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tennant	$1.25 billion	1.19	$83.70 million	$3.21	25.13
Tri-Tech	N/A	N/A	N/A	N/A	N/A

Tennant has higher revenue and earnings than Tri-Tech.

Volatility & Risk

Tennant has a beta of 1.06, meaning that its stock price is 6% more volatile than the S&P 500. Comparatively, Tri-Tech has a beta of 31.54, meaning that its stock price is 3,054% more volatile than the S&P 500.

Summary

Tennant beats Tri-Tech on 8 of the 10 factors compared between the two stocks.

About Tennant

Tennant Company, together with its subsidiaries, designs, manufactures, and markets floor cleaning equipment in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company offers a suite of products, including floor maintenance and cleaning equipment, detergent-free and other sustainable cleaning technologies, aftermarket parts and consumables, equipment maintenance and repair services, and asset management solutions. It provides business solutions, such as financing, rental, and leasing programs, as well as machine-to-machine asset management solutions. The company offers its products under the Tennant, Nobles, Alfa Uma Empresa Tennant, IPC, Gaomei, and Rongen brands, as well as private-label brands. Its products are used in retail establishments and distribution centers; factories and warehouses; and public venues, such as arenas and stadiums, office buildings, schools and universities, hospitals and clinics, and other environments. The company markets its products to contract cleaners and businesses through direct sales and service organizations, as well as through a network of authorized distributors. Tennant Company was founded in 1870 and is headquartered in Eden Prairie, Minnesota.

About Tri-Tech

Tri-Tech Holding Inc. provides consulting, engineering, procurement, construction, and technical services. Its Water, Wastewater Treatment and Municipal Infrastructure segment procures and constructs build-transfer processing equipment and processing control systems for the municipal water supply and distribution, wastewater treatment, and gray water recycling activities; and offers municipal facilities engineering and operation management services for related infrastructure construction projects. The company's Industrial Pollution Control and Safety segment provides systems for volatile organic compounds abatement, odor control, water and wastewater treatment, water recycling facilities design, engineering, procurement, and construction for oil, gas, petrochemical, and power industries. The company serves government, state-owned entities, and commercial clients. Tri-Tech Holding Inc. was incorporated in 2002 and is based in Beijing, the People's Republic of China.