Middleby (NASDAQ:MIDD – Get Free Report) and Twin Disc (NASDAQ:TWIN – Get Free Report) are both industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, risk, analyst recommendations, dividends, institutional ownership and profitability.
Profitability
This table compares Middleby and Twin Disc’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Middleby | -5.22% | 14.66% | 7.20% |
| Twin Disc | 0.10% | 0.23% | 0.10% |
Analyst Ratings
This is a breakdown of recent ratings for Middleby and Twin Disc, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Middleby | 1 | 3 | 5 | 0 | 2.44 |
| Twin Disc | 1 | 0 | 1 | 0 | 2.00 |
Insider and Institutional Ownership
98.6% of Middleby shares are held by institutional investors. Comparatively, 65.3% of Twin Disc shares are held by institutional investors. 6.2% of Middleby shares are held by insiders. Comparatively, 22.1% of Twin Disc shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Middleby and Twin Disc”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Middleby | $3.88 billion | 1.67 | $428.43 million | ($4.40) | -29.13 |
| Twin Disc | $340.74 million | 0.66 | -$1.89 million | $0.02 | 777.50 |
Middleby has higher revenue and earnings than Twin Disc. Middleby is trading at a lower price-to-earnings ratio than Twin Disc, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Middleby has a beta of 1.39, meaning that its stock price is 39% more volatile than the S&P 500. Comparatively, Twin Disc has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500.
Summary
Middleby beats Twin Disc on 10 of the 14 factors compared between the two stocks.
About Middleby
The Middleby Corporation designs, markets, manufactures, distributes, and services foodservice, food processing, and residential kitchen equipment worldwide. Its Commercial Foodservice Equipment Group segment offers conveyor, combi, convection, baking, proofing, deck, speed cooking, and hydrovection ovens; ranges, fryers, and rethermalizers; steam cooking, food warming, catering, induction cooking, and countertop cooking equipment; heated cabinets, charbroilers, ventless cooking systems, kitchen ventilation, toasters, griddles, charcoal grills, professional mixers, stainless steel fabrication, custom millwork, professional refrigerators, blast chillers, cold rooms, ice machines, and freezers; soft serve ice cream, coffee and beverage dispensing, home and professional craft brewing equipment; and fry dispensers, bottle filling and canning equipment, IoT solutions, and controls development and manufacturing. The company's Food Processing Equipment Group segment provides batch, baking, proofing, conveyor belt, and continuous processing ovens; frying and automated thermal processing systems; tumblers, massagers, grinders, slicers, reduction and emulsion systems, mixers, and blenders; battering, breading, and seeding equipment; water cutting systems, food presses, food suspension equipment, filling and depositing solutions, and forming equipment; and automated washing systems, auto-guided vehicles, food safety, food handling, freezing, and defrosting and packaging equipment. Its Residential Kitchen Equipment Group segment offers kitchen equipment comprising cookers, stoves, cooktops, microwaves, ovens, refrigerators, dishwashers, undercounter refrigeration, wine cellars, ice machines, beer dispensers, mixers, rotisseries, and ventilation and outdoor cooking equipment. The company was formerly known as Middleby Marshall Oven Company and changed its name to The Middleby Corporation in 1985. The company was founded in 1888 and is based in Elgin, Illinois.
About Twin Disc
Twin Disc, Incorporated engages in the design, manufacture, and sale of marine and heavy duty off-highway power transmission equipment in the United States, the Netherlands, China, Australia, Italy, and internationally. The company operates in two segments, Manufacturing and Distribution. Its principal products include marine transmissions, azimuth drives, surface drives, propellers, and boat management systems, as well as power-shift transmissions, hydraulic torque converters, power take-offs, industrial clutches, and controls systems. The company also provides third-party manufactured products. It sells its products through a direct sales force and distributor network to customers primarily in the pleasure craft, commercial marine, patrol, and military marine markets, as well as in the energy and natural resources, government, agriculture, recycling, construction, oil and gas, and industrial markets. The company was incorporated in 1918 and is headquartered in Milwaukee, Wisconsin.
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